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 | $1,340 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,090 | $356,914 | 0.59% | F |
U.S. Census Bureau data (2024)
The market dynamics in ZIP code 16851 present a compelling picture of a region where rental properties are likely to be in high demand relative to supply. This inference is drawn from the snapshot data available: the Fair Market Rent (FMR) for the area stands at $1330 for the fiscal year 2024, while the market rent, according to Census ACS, is $2,164. The disparity between these two figures suggests that the actual rental market is robust and possibly exceeds what is considered fair market value, indicating a scenario where demand might be outpacing supply.
The median home value of $369,092 provides context on the overall economic health of the area and the potential affordability for homeownership. However, with only 26.4% of residents being renters, it's important to note that this percentage alone doesn't fully capture the dynamics of housing pressure. Typically, a higher renter share could indicate greater long-term housing pressure due to limited affordable housing options or economic factors that make owning a home less feasible. In ZIP 16851, the relatively low renter share might suggest that homeownership is still a viable option for many residents, but the high market rent implies that those who must rent are facing significant costs.
While the specific data points for price-cut share and days on market (DOM) are not available, the existing information allows us to infer that the rental market is active and potentially competitive. Landlords and small-portfolio investors should take note of the strong rental pricing, which can be a positive indicator for income generation. However, the potential for future changes in the balance between supply and demand remains uncertain without additional time-series data.
The high market rent compared to the FMR also signals that there may be opportunities for rental properties that can offer value at or near the FMR level, especially if they cater to tenants seeking more affordable options. This could be a strategic consideration for investors looking to diversify their portfolio or target specific segments of the market.
In summary, ZIP 16851 appears to be a market with strong rental dynamics, where demand is currently robust enough to support high rents. The median home value and renter share provide insight into the broader housing landscape, but the key takeaway is the potential for rental investments to yield favorable returns given the current pricing trends.
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.