Location: Venango County, PA | Metro: Mercer County, PA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $126,839 | 0.8% | D |
| 3BR | $1,290 | $177,621 | 0.73% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 16342 in Polk, Pennsylvania, reveals a favorable environment for cash flow generation. The HUD Fair Market Rent (FMR) for ZIP 16342 is set at $850 for fiscal year 2024. In contrast, the market rent based on Census ACS data stands at $771. This indicates that voucher tenants will cashflow at FMR, providing a consistent positive cash flow for investors.
To derive the rent-to-price ratio, we can use the median home value of $146,679. Dividing the HUD FMR of $850 by the median home value yields a monthly rent-to-price ratio of approximately 0.58%. This low ratio suggests that rental income represents a small portion of the property's total value, which can be beneficial for investors seeking long-term stability and potential appreciation.
While the median Days on Market (DOM) and the percentage of price cuts are noted as N/A, these metrics typically influence the rent-versus-buy dynamics. However, given the positive cash flow scenario, the lack of specific DOM and price cut data does not significantly impact the investment decision. The current conditions favor investors who prioritize cash flow over short-term price fluctuations or rapid turnover.
The strongest investor angle in ZIP 16342 is cash flow. With voucher tenants paying above the market rent, investors can expect steady positive cash flows, making it an attractive option for those focused on generating reliable income from their investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.