Location: Bedford County, PA | Metro: Bedford County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase properties in ZIP code 16664 for Section 8 investment starts with three key questions.
1) Does the Fair Market Rent (FMR) of $1,120 cover the debt service on a property valued at $259,563?
If the answer is yes, then proceed to the next question. The FMR is a critical benchmark because it represents the maximum amount that a Section 8 tenant can pay towards their housing costs. For a property priced at $259,563, the FMR needs to be sufficient to meet the mortgage payments and other expenses associated with owning the property.
If the answer is no, then buying in this ZIP code is not advisable for Section 8 purposes. The FMR must be high enough to ensure that the rental income covers the cost of ownership.
2) Is the market rent of $871 above, at, or below the FMR?
If the market rent is below the FMR, it indicates that the local rental market is undervalued compared to what the government will reimburse. This scenario would favor landlords who can secure Section 8 tenants, as they can potentially charge closer to the FMR and still find renters willing to pay the lower market rate.
If the market rent is at or above the FMR, then the potential for profit diminishes. Landlords would need to carefully consider if they can maintain occupancy rates at the higher FMR level, which might be challenging given the economic conditions of the area.
3) Do the 12.9% of residents renting and an unspecified number of days on the market indicate enough demand for Section 8 properties?
If the demand is strong, meaning that there is a significant portion of the population renting and the days on the market (DOM) is low, this suggests that properties can be rented out quickly and consistently. In such a case, investing in Section 8 properties would be a good strategy, as the demand supports steady occupancy.
If the demand is weak, characterized by a low percentage of renters or a high DOM, then securing tenants might prove difficult. This could lead to periods of vacancy, which are financially detrimental. In this scenario, purchasing properties solely for Section 8 investment is not recommended without further investigation into the local rental market dynamics.
If it's uncertain, due to incomplete data on DOM, the decision hinges on other factors like the local economy, unemployment rates, and the overall housing situation. A deeper analysis of these elements is required before making an informed decision.
In summary, if the FMR clears the debt service, the market rent is below the FMR, and there is sufficient demand indicated by the rental percentage and DOM, then the answer is yes, you should buy in ZIP 16664 for Section 8. Otherwise, it depends on additional factors or the answer is no.
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.