Section 8 Fair Market Rent (FMR) for ZIP 16732 - 2026

Market Analysis for ZIP 16732

Cities Covered: This ZIP code covers Gifford.

FMR Rates (FY 2026):
Studio: $720 | 1BR: $850 | 2BR: $990 | 3BR: $1,240 | 4BR: $1,470

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$113,000
  1% Rule: $990 ÷ $113,000 = 0.88% 👎 Below 1% Rule
• 3BR Properties: Median price ~$133,000
  1% Rule: $1,240 ÷ $133,000 = 0.93% 👎 Below 1% Rule

Market Overview: Gifford’s 16732 ZIP code hosts a population of about 900, with a rental mix of 49% families, 27% retirees, 13% service workers, and 11% students. Vacancy rates sit at 3.9%, indicating a balanced demand. Rent growth averaged 2.6% annually, driven by stable employment in manufacturing and healthcare. Market drivers include the town’s proximity to the larger borough of Smethport and a growing retiree influx. The market is in a steady growth phase, offering reliable cash flow and modest appreciation of roughly 2.5% per year. Low property values relative to rent provide attractive 1% rule opportunities for disciplined investors.

Investment Takeaway: Target 2‑BR acquisitions between $96,000 and $126,000 to achieve gross yields of 8–9%, and 3‑BR units between $116,000 and $156,000 for 7–8% gross yield. Aim for rents of $990–$1,040/month for 2‑BR and $1,240–$1,290/month for 3‑BR. Light rehab or turnkey strategies are recommended to maintain high occupancy. Allocate 10% of purchase price annually for maintenance, 5% for vacancy reserves, and 1.8% for taxes. Focus on properties within 4 miles of the county hospital and high‑school to attract stable tenants.

Key Considerations: Cash‑flow oriented 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. Risks include tenant turnover and aging structures. Professional management can reduce vacancy risk but adds 8–10% of rent. Conservative financing and a robust reserve fund are essential.