Location: McKean County, PA | Metro: Elk County, PA
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 | $750 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $137,530 | 0.9% | C |
U.S. Census Bureau data (2024)
The ZIP code 16735 presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant concern, as the market rent stands at $841 compared to the Fair Market Rent (FMR) of $970 for the fiscal year 2026 in the metropolitan area. This gap can lead to higher turnover rates since tenants might struggle to meet the FMR, causing them to leave when their subsidy doesn't cover the full amount.
Vacancy exposure is another critical issue. With an unknown number of days on the market (DOM), it's difficult to predict how long properties will remain vacant. In a competitive rental market, vacancies can persist longer, reducing potential income and increasing the risk of financial loss.
Deferred maintenance poses a threat due to the typical home value of $101,678 and the median income of $57,489. Landlords must be prepared to invest in property upkeep, as lower-income residents may not have the resources to address maintenance issues promptly. This can result in increased costs for landlords who must ensure their properties comply with housing quality standards.
Despite these risks, there are factors that mitigate the challenges. The renter share in ZIP 16735 is 25.5%, indicating a high concentration of renters. High renter density typically translates into greater demand for rental units, including those that accept Section 8 vouchers. This demand can help stabilize occupancy rates and provide a steady stream of tenants willing to use vouchers.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.