Location: Crawford County, PA | Metro: Crawford County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 16360 reveals a stark contrast between the federal market rent (FMR) and the actual market rent, impacting potential investment yields significantly.
Based on the data provided, the annualized Federal Market Rent for a two-bedroom apartment in ZIP 16360 for fiscal year 2026 is set at $970 per month, or $11,640 annually. The median home value in this area stands at $167,943. Using these figures, the implied gross yield for a Section 8 property under the FMR scenario would be approximately 6.94%. This calculation is derived by dividing the annualized rent ($11,640) by the median home value ($167,943).
In contrast, the Census ACS reports the market rent for a two-bedroom apartment at $650 per month, or $7,800 annually. When applying this market rent to the median home value, the implied gross yield drops to about 4.65%. This figure is obtained by dividing the annual market rent ($7,800) by the median home value ($167,943).
The disparity between these two yields is significant, and the choice of which to use depends largely on the investor's strategy and the local rental market conditions. Given that only 12.7% of the population in ZIP 16360 are renters, securing long-term Section 8 tenants might prove challenging. However, the lack of data regarding days on market (DOM) means we cannot fully assess the speed at which properties are rented out. Despite this, the lower market rent scenario seems more realistic due to the relatively low renter density, suggesting that demand for rental properties may not support the higher FMR rates consistently.
To conclude, while the Section 8 program offers a higher guaranteed rent at $970 per month, leading to a gross yield of 6.94%, the actual market conditions suggest a more conservative estimate of $650 per month, resulting in a gross yield of 4.65%. Investors should consider the local rental market dynamics and the specific terms of the Section 8 program when deciding which rate to apply to their investment calculations.
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.