Location: Bedford County, PA | Metro: Altoona, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 16625 in Bedford County, PA reveals several key points for potential landlords and small-portfolio investors. Firstly, regarding the rent math, the Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1010. This figure is significantly higher than the market rent, which stands at $804 according to the latest Census ACS data. This discrepancy means that landlords might struggle to find tenants willing to pay the higher FMR rate, as the local market is accustomed to lower rental prices.
Secondly, the acquisition cost of properties in ZIP 16625 is relatively low, with a median home value of $143,311. However, the lack of available data on days on market (DOM) and the percentage of homes sold with price cuts suggests a less active housing market. This could indicate slower sales and potentially lower resale values, making it important for investors to consider the long-term stability of their investments.
Lastly, there is a moderate tenant demand in the area. With a population of 3,147 and a 29.4% renter share, approximately 925 residents are likely seeking rental housing. While this number is not insignificant, it is crucial to note that the total demand is limited by the size of the population. Therefore, competition among landlords could be high, especially if the rental supply exceeds the demand.
In conclusion, while the median home value in ZIP 16625 presents an opportunity for affordable acquisitions, the mismatch between the FMR and market rent rates poses a challenge for landlords aiming to maximize their income. Additionally, the moderate tenant demand indicates a need for competitive pricing strategies. Investors should proceed cautiously, focusing on properties that can attract tenants at the lower market rate and ensuring they have a solid understanding of the local rental market dynamics.
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.