Location: Altoona, PA | Metro: Altoona, PA MSA
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 | $780 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $127,430 | 0.88% | C |
| 3BR | $1,440 | $155,047 | 0.93% | C |
| 4BR | $1,660 | $196,702 | 0.84% | C |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 16602 in Altoona, PA, are significant and should be carefully considered. Tenant turnover is a key concern, as the market rent stands at $1,076 while the Fair Market Rent (FMR) for FY 2024 is only $1,010. This difference can lead to tenants leaving when their vouchers expire, unable to afford the higher market rent. Landlords must also prepare for the possibility of extended vacancy periods, given that the days on market (DOM) average 33 days. This period can increase if there is a lack of qualified voucher holders ready to move in immediately.
A further risk lies in deferred maintenance. With a typical home value of $130,641 and a median household income of $55,046, many residents may struggle to keep up with home repairs and maintenance, leading to potential issues that require immediate attention and investment from the landlord. The financial strain on local families can translate into higher demands for subsidized housing, which may result in more wear and tear on properties.
However, these risks are offset by the high concentration of renters in the area. The renter share of the population in ZIP 16602 is 32.7%, indicating a robust demand for rental properties. High renter density typically correlates with a greater number of individuals seeking housing assistance through Section 8 vouchers, thus providing a steady stream of potential tenants. The large pool of renters ensures that there will likely be a consistent supply of voucher holders, reducing the likelihood of long-term vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.