Location: Huntingdon County, PA | Metro: Bedford County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 16679 centers around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,030, whereas the Census ACS reports the market rent at $833. This creates a gap of $197 per month, which translates to an approximately 23.6% difference between what landlords can potentially charge through the Section 8 program and the current market rate.
Given that the FMR exceeds the market rent, this scenario presents a compelling yield play for landlords and small-portfolio investors. By accepting Section 8 tenants, landlords can charge a higher rent compared to the open-market rates without the risk of vacancy. This is particularly advantageous in ZIP 16679 where only 17.8% of residents are renters, indicating a relatively low competition for rental properties among potential tenants. The median home value in the area is $109,148, and the median income stands at $50,893, suggesting that many homeowners might find it financially challenging to keep up with property maintenance and mortgage payments. Consequently, there is a strong incentive for landlords to leverage the higher rents allowed under the Section 8 program to maximize their returns.
However, landlords must be aware of the operational costs associated with housing voucher tenants. While the higher rent can improve cash flow, the administrative burden of participating in the Section 8 program includes regular inspections, compliance with HUD standards, and sometimes slower payment cycles. These factors need to be weighed against the financial benefits of the increased rent to ensure that the net yield remains attractive.
In summary, the gap between the FMR and market rent in ZIP 16679 offers a clear opportunity for landlords to enhance their yields by participating in the Section 8 program. Despite the operational challenges, the potential to charge $197 more per month than the open-market rate makes it a viable strategy, especially considering the local economic conditions and the relatively low percentage of renters in the area.
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.