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 |
|---|---|---|---|---|
| 2BR | $1,270 | $249,413 | 0.51% | F |
| 3BR | $1,590 | $296,089 | 0.54% | F |
| 4BR | $1,680 | $372,662 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 16844, centered around Julian, PA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1160, while the Census ACS reports the market rent at $873. This discrepancy amounts to a $287 difference, representing a 33% gap between what voucher tenants can be reimbursed and the prevailing local rental rates.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors have an opportunity to achieve higher yields by participating in the Section 8 program. The potential for increased cash flow arises because the reimbursement rate ($1160) is above the typical rental price ($873). This means that properties leased through Section 8 can generate more income per unit than those rented at open-market rates, making it a lucrative strategy for maximizing returns in the Julian, PA real estate market.
Julian, PA has a relatively low percentage of renters at 7.0%, indicating that homeownership is prevalent, with a median home value of $292,738. Despite this, the median household income of $85,147 suggests that many residents may find it challenging to afford homeownership, thereby increasing the demand for affordable rental options. Given these conditions, the Section 8 program provides a viable solution for both tenants seeking affordable housing and landlords aiming to optimize their investment yields.
The gap between the FMR and market rent also implies that landlords who participate in the Section 8 program can potentially offer slightly better quality or more desirable units without significantly impacting their bottom line. This could be advantageous in attracting tenants who might otherwise struggle to find suitable housing within their budget constraints.
However, it is important to note that while the FMR provides a higher reimbursement rate, there are administrative and compliance costs associated with the Section 8 program. Landlords must ensure that their properties meet certain standards and undergo regular inspections, which can incur additional expenses. Nonetheless, the overall financial benefit of leasing to voucher tenants at a rate higher than the market average makes the Section 8 program a compelling option for maximizing returns in Julian, PA.
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.