Location: State College, PA | Metro: State College, PA MSA
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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $369,484 | 0.43% | F |
| 3BR | $2,060 | $391,126 | 0.53% | F |
| 4BR | $2,100 | $548,588 | 0.38% | F |
| 5BR | $2,436 | $810,936 | 0.3% | F |
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). Median home prices from Zillow (2026-07-31). 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.