Location: McKean County, PA | Metro: McKean County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 16750 under the Section 8 program reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $1,000 for fiscal year 2026, while the Census ACS data indicates that the market rent stands at $777. This means there is a gap of $223, or approximately 28.7%, between what the government deems fair and what the local market currently charges.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to increase their yields. By accepting Section 8 tenants, they can charge the higher FMR rate without facing the typical risks associated with renting to low-income individuals. This scenario presents an opportunity for investors to secure a higher rental income than the prevailing market rates, thus enhancing their overall returns on investment.
The context of ZIP 16750 further supports this thesis. With only 9.3% of residents being renters, the demand for rental properties is relatively low, making it advantageous for landlords to attract tenants through the Section 8 program. Additionally, the median income of $122,689 suggests that the majority of residents can afford homeownership, leaving a smaller pool of potential renters who might otherwise struggle to find affordable housing. Therefore, landlords who accept Section 8 vouchers are not only filling a need but also ensuring steady, above-market-rate income from their investments.
It's important to note that while the FMR provides a benchmark for rental pricing, the actual cost of housing voucher tenants should be considered. Landlords must ensure that the administrative costs, such as processing applications and managing the voucher program, do not erode the increased yield. However, the benefits of stable tenancy and guaranteed income often outweigh these costs, making Section 8 a viable option for maximizing returns in ZIP 16750.
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.