Location: State College, PA | Metro: State College, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,330 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
U.S. Census Bureau data (2024)
The ZIP code 16827, encompassing Boalsburg, PA, presents an interesting scenario for both renters and landlords. The median income in the area stands at $103,558, which provides a benchmark for assessing the affordability of housing. At a market rate of $1,795 (ZORI), renting in this ZIP code becomes challenging for the average household. This figure represents a significant portion of the median income, making it less accessible for many residents.
In contrast, the Housing Choice Voucher program offers a more affordable option with a Fair Market Rent (FMR) of $1,440 for the fiscal year 2024. This amount is considerably lower than the market rate, aligning better with the financial capabilities of the local population. Given that only 20.4% of the 5,123 residents are renters, the competition among landlords for tenants is relatively low compared to densely populated areas.
The disparity between the ZORI ($1,795) and the FMR ($1,440) highlights a notable affordability gap. For landlords, this means that relying solely on market-rate rents might limit their pool of potential tenants, especially if they are unwilling to accept vouchers. Conversely, accepting vouchers could attract a broader range of renters, potentially increasing occupancy rates and reducing vacancy periods.
The takeaway for landlords considering their rental strategy is clear: while market-rate rents offer higher immediate returns, the voucher program provides a steady and reliable stream of income, backed by government support. Landlords should weigh the benefits of higher cash payments against the stability and accessibility offered by voucher programs, particularly in a ZIP code where the tenant base is smaller and competition is less intense.
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.