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 | $1,070 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,590 | $212,779 | 0.75% | D |
U.S. Census Bureau data (2024)
The ZIP code 16829, located in Centre County, State College, PA MSA, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1160, which is significantly higher than the average market rent reported by the Census ACS, currently at $825. This disparity means that voucher tenants can provide positive cash flow at the FMR rate, making it a lucrative option for landlords and small-portfolio investors.
To further analyze the investment potential, consider the median home value in ZIP 16829, which stands at $198,817. Using this figure, we can calculate the rent-to-price ratio. With an average market rent of $825, the annual rent would be $9,900. Dividing this by the median home value gives us a rent-to-price ratio of approximately 5%. This ratio suggests that rental income alone may not cover the total cost of owning a property outright; however, when paired with Section 8 vouchers, the effective rent received ($1160) increases the annual rental income to $13,920, thus improving the overall financial viability of the investment.
Note that the data does not provide specific median Days on Market (DOM) or the percentage of price cuts shared by sellers. However, these metrics are less critical given the strong cash flow potential derived from the HUD FMR versus the lower market rents. The stability of the Section 8 program ensures a consistent stream of income, which is particularly beneficial in a competitive rental market.
The strongest investor angle in ZIP 16829 is cash flow, driven by the favorable gap between the HUD FMR and the actual market rent. This allows investors to earn above-market rates without facing the volatility often associated with non-subsidized rentals.
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.