Location: Warren County, PA | Metro: Warren County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
To analyze the Section 8 cap-rate picture for ZIP code 16312, we need to consider the Federal Market Rent (FMR) and the potential market rent. The FMR for a 2-bedroom apartment in ZIP 16312 for fiscal year 2026 is set at $970 per month. This annualizes to $11,640 per year.
The median home value in ZIP 16312 is not available, making it challenging to calculate an exact cap rate. However, we can still derive some insights using the available data. The implied gross yield based on the FMR would be calculated by taking the annualized rental income and dividing it by the median home value. Since the median home value is not provided, we cannot compute this figure directly.
In the absence of market rent data, it's difficult to provide a precise comparison between the Section 8 FMR and what the market might bear. Typically, market rents can vary widely depending on local demand, property condition, and location within the ZIP code. However, the lack of market rent data means we must rely solely on the FMR for our analysis.
Given that the ZIP code has a 100.0% renter density, it suggests a high demand for rental properties, which could potentially support higher market rents than the FMR. However, without specific market rent figures, it's impossible to state the exact difference in gross yields. It's important to note that the days on market (DOM) being not available also prevents us from understanding how quickly properties are rented out, which is a key factor in determining the feasibility of Section 8 versus market rentals.
In conclusion, while the FMR provides a baseline for calculating the gross yield in ZIP 16312, the lack of market rent and median home value data limits the ability to draw a direct comparison. Investors should gather additional local market data to make informed decisions about whether participating in the Section 8 program or targeting market-rate tenants would offer a better return on investment.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.