Section 8 Fair Market Rent (FMR) for ZIP 16730 - 2026

Market Analysis for ZIP 16730

Cities Covered: This ZIP code covers East Smethport.

FMR Rates (FY 2026):
Studio: $710 | 1BR: $840 | 2BR: $980 | 3BR: $1,230 | 4BR: $1,460

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$111,000
  1% Rule: $980 ÷ $111,000 = 0.88% 👎 Below 1% Rule
• 3BR Properties: Median price ~$131,000
  1% Rule: $1,230 ÷ $131,000 = 0.94% 👎 Below 1% Rule

Market Overview: The 16730 ZIP code serves the small borough of East Smethport and surrounding hamlets, with a population of about 1,200. Renters are 48% families, 28% retirees, 14% service workers, and 10% students. Vacancy is low at 3.8%. Rent growth averaged 2.8% annually, supported by stable employment in the county’s healthcare facilities and a steady influx of retirees seeking low‑cost living. Market drivers include proximity to the Pennsylvania State Game Lands, modest tourism, and a reliable local school district. The market is in a steady growth phase, delivering solid cash flow and modest appreciation of roughly 2.5% per year. Property values are low relative to rent, making 1% rule targets attainable with moderate investment.

Investment Takeaway: Target 2‑BR purchases between $92,000 and $122,000 to achieve gross yields of 8–9%, and 3‑BR units between $112,000 and $152,000 for 7–8% yield. Aim for rents of $980–$1,030/month for 2‑BR and $1,230–$1,280/month for 3‑BR. Use light rehab or turnkey strategies to attract stable tenants. Allocate 10% of purchase price annually for maintenance, 5% for vacancy reserves, and 1.8% for taxes. Focus on properties within 3 miles of the local hospital and high‑school to capture consistent demand.

Key Considerations: Primarily a cash‑flow market with 2–3% appreciation. Screen tenants with credit scores ≥650, income ≥3× rent, and reference checks. Budget 10% for maintenance, 5% for vacancy, 1.8% for taxes, and 8% of rent for management if needed. Dominant risks are tenant turnover and aging infrastructure. Professional management reduces vacancy risk but adds 8–10% of rent. Conservative financing and a robust reserve fund are critical.