Location: McKean County, PA | Metro: McKean County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
In ZIP code 16738, there are several risks that a landlord or small-portfolio investor should consider before engaging in Section 8 investments. Tenant turnover is a significant concern, as the market rent stands at $865 compared to the Fair Market Rent (FMR) of $1,050 for fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants might be more inclined to leave once their financial situation improves, leading to higher turnover rates.
Vacancy exposure is another issue to address. The average days on market (DOM) is currently unknown, which makes it difficult to predict how long a property might remain vacant between tenants. This uncertainty can lead to significant financial losses due to the lack of rental income during these periods.
The risk of deferred maintenance is also present. With a median income of $66,971, residents might prioritize immediate expenses over maintaining their homes, potentially leading to properties requiring substantial repairs or upgrades. This financial pressure on tenants can result in increased wear and tear on the property, necessitating more frequent maintenance and capital improvements.
However, these risks must be weighed against the high renter density in the area, indicated by the 10.9% renter share. High renter density typically correlates with greater demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of rental income. This demand can mitigate some of the risks associated with tenant turnover and vacancy exposure.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.