Section 8 Fair Market Rent (FMR) for ZIP 16731 - 2026

Market Analysis for ZIP 16731

Cities Covered: This ZIP code covers Eldred.

FMR Rates (FY 2026):
Studio: $710 | 1BR: $830 | 2BR: $970 | 3BR: $1,220 | 4BR: $1,450

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$112,000
  1% Rule: $970 ÷ $112,000 = 0.87% 👎 Below 1% Rule
• 3BR Properties: Median price ~$132,000
  1% Rule: $1,220 ÷ $132,000 = 0.92% 👎 Below 1% Rule

Market Overview: Eldred’s 16731 ZIP code is a small borough with a population of roughly 1,000. The rental demographic breakdown is 47% families, 26% retirees, 16% service workers, and 11% students. Vacancy rates are 4.1%, reflecting moderate demand. Rent growth over the past year was 3.0%, supported by stable employment at local hospitals and a growing retiree community. Market drivers include the area’s proximity to the Pennsylvania State Game Lands and a small but steady tourism sector. The market is in a stable growth phase, offering reliable cash flow and modest appreciation of about 2.4% per year. Low property values relative to rent make the 1% rule attainable with disciplined investment.

Investment Takeaway: Acquire 2‑BR units priced between $94,000 and $124,000 to achieve gross yields of 8–9%, and 3‑BR units between $114,000 and $154,000 for 7–8% yield. Target rents of $970–$1,020/month for 2‑BR and $1,220–$1,270/month for 3‑BR. Employ light rehab or turnkey strategies to maintain high occupancy. Allocate 10% of purchase price annually for maintenance, 5% for vacancy, and 1.8% for taxes. Focus on properties near the local hospital and school district to attract stable, long‑term tenants.

Key Considerations: Cash‑flow market with 2–3% appreciation. Screen tenants with credit scores ≥650, income ≥3× rent, and employment verification. Budget 10% for maintenance, 5% for vacancy, 1.8% for taxes, and 8% of rent for management if needed. Risks include tenant turnover and deferred maintenance. Professional management can mitigate vacancy risk but adds 8–10% of rent. Conservative leverage and a strong reserve fund are essential.