Location: Huntingdon County, PA | Metro: Bedford 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 | $820 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $224,459 | 0.63% | D |
U.S. Census Bureau data (2024)
The analysis for ZIP code 16657 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR, set at $970 for the fiscal year 2026, stands notably higher than the Census ACS-reported market rent of $683. This creates a gap of $287 per month, which translates into a 42% difference favoring the FMR.
This scenario presents a compelling opportunity for landlords and small-portfolio investors interested in Section 8 properties. The discrepancy means that voucher tenants can afford rents that are substantially above the current market rate, making it a strong yield play. Landlords can potentially charge closer to the FMR of $970 without exceeding what the government will reimburse through the voucher program, thus maximizing rental income.
However, the decision to accept Section 8 tenants must be made with an understanding of the broader economic context of ZIP 16657. With only 10.3% of residents classified as renters, the demand for rental properties is relatively low. Additionally, the median home value in the area is $202,481, indicating a moderate level of property values. Coupled with a median income of $63,353, the financial landscape suggests that while the potential for higher yields exists, the overall rental market may be less competitive compared to areas with higher percentages of renters.
In conclusion, the gap between the FMR and market rent in ZIP 16657 represents a strategic advantage for those willing to engage with the Section 8 program. It allows for a yield play that could significantly enhance investment returns. However, investors should also consider the limited rental market and the average income levels when evaluating the feasibility and attractiveness of such investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.