Location: Clearfield County, PA | Metro: State College, 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 | $1,070 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,590 | $148,245 | 1.07% | B |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 16666 reveals interesting insights into potential investment opportunities. For a two-bedroom property, the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $1160 per month. When annualized, this translates to an income of $13,920 per year. In contrast, the market rent based on Census ACS data stands at $870 per month, equating to an annual income of $10,440.
To derive the gross yield, we use the median home value of $103,946. The implied gross yield for the FMR scenario is approximately 13.4%, calculated by dividing the annualized FMR income ($13,920) by the median home value ($103,946). For the market rent scenario, the gross yield drops to about 10.0%, derived by dividing the annualized market rent ($10,440) by the median home value ($103,946).
The difference between these yields highlights the financial benefits of participating in the Section 8 program. However, it's important to consider the actual rental market dynamics. With only 8.6% of residents being renters, competition for tenants might be low, which could impact the likelihood of consistently renting properties at the FMR rate.
The N/A-day DOM (Days on Market) indicates that there isn't enough recent data to determine how quickly properties are rented out in this area. This lack of information can affect the reliability of using the FMR rate for long-term projections. Given these factors, the market rent scenario is likely more realistic for most investors, despite the lower gross yield.
In conclusion, while the Section 8 program offers a higher gross yield of 13.4%, the reality of the local rental market suggests that achieving this yield consistently may be challenging. Therefore, investors should consider the market rent scenario, which provides a gross yield of 10.0%, as a more practical basis for their investment decisions in ZIP 16666.
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.