Location: Clearfield County, PA | Metro: Clearfield County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 16837 provides insight into potential investment opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $970 per month. This figure annualizes to $11,640, which represents the maximum amount that a Section 8 voucher can cover annually for a tenant in this ZIP code.
Market rent data for ZIP 16837 is currently unavailable, making it difficult to compare directly with the FMR. However, for the sake of analysis, we can consider the FMR as a baseline rental income for properties that might be eligible for Section 8 tenants. Given the median home value is also not available, we must rely on other metrics such as the 20.0% renter density and the days on market (DOM) to infer the general market conditions.
The implied gross yield for a property renting at the FMR level can be calculated by dividing the annual rental income by the property value. Since the median home value is not provided, we cannot calculate an exact gross yield. However, assuming a typical home value in the region, if a property rents for $11,640 annually, the gross yield would be lower compared to what could potentially be achieved with market rents. For example, if the median home value were hypothetically $200,000, the gross yield would be 5.82%. If market rents were higher, say $1,200 monthly, the annualized market rent would be $14,400, leading to a gross yield of 7.20% under the same hypothetical property value.
Given the 20.0% renter density, it suggests that a significant portion of the housing market is occupied by owners rather than renters. This implies that while there may be demand for rental units, particularly those participating in the Section 8 program, the overall rental market may not be as robust. The days on market (DOM) being not available means we cannot assess how quickly rental units are typically leased, but in combination with the low renter density, it indicates that landlords might face challenges in finding tenants willing to pay market rates.
In conclusion, the gross yield based on the FMR is likely to be the more realistic scenario for landlords in ZIP 16837, considering the limited market rent data and the lower renter density. While higher yields might be possible with market rents, the reality of finding tenants who can pay above the FMR may be constrained by the local economic conditions and housing preferences. Thus, focusing on the guaranteed income through the Section 8 program can provide a stable, albeit lower yielding, investment opportunity.
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.