Location: Altoona, PA | Metro: Altoona, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
ZIP code 16617, located within the Altoona, PA MSA, serves as a strong cash-flow anchor for Section 8 portfolios. The Federal Market Rent (FMR) for FY 2024 is set at $1000, which is $79 higher than the current market rent of $921. This spread ensures that landlords can rely on stable rental income from Section 8 tenants, surpassing the typical market rates.
The median home value in ZIP 16617 is $165,028, indicating a relatively affordable housing market. While appreciation plays typically involve properties with high price-cut shares and longer days on market (DOM), these metrics are not applicable here, suggesting that significant capital appreciation is unlikely. However, the primary focus for this ZIP code should be on generating consistent cash flow rather than betting on property value increases.
The area has a 22.4% renter share, meaning a substantial portion of the population is already accustomed to renting, making it easier to attract and retain tenants. Additionally, the median income of $52,609 supports the viability of Section 8 programs, as it indicates that many residents qualify for the assistance. Landlords can benefit from the guaranteed income stream provided by the Section 8 program, knowing that the government will cover the difference between the market rate and what the tenant can afford.
In summary, ZIP 16617 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The positive spread between FMR and market rent, combined with an established rental market and a median income level that supports Section 8 participation, makes this area ideal for investors seeking reliable, government-backed rental income.
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.