Location: State College, PA | Metro: State College, PA MSA
| 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 |
U.S. Census Bureau data (2024)
In ZIP code 16852, potential pitfalls for Section 8 landlords include significant tenant turnover due to the substantial gap between the market rent of $783 and the Federal Market Rent (FMR) of $1160 for fiscal year 2024. This disparity can lead to frequent changes in occupancy, which may increase administrative burdens and operational costs.
Vacancy exposure is another concern. The lack of available data on days on market (DOM) suggests that there might be periods where properties remain vacant longer than anticipated, leading to lost rental income. Additionally, the typical home value of $253,179 paired with a median income of $57,917 indicates a high likelihood of deferred maintenance. Landlords must prepare for higher-than-average repair and maintenance expenses to keep properties up to code and attractive to tenants.
However, these risks are mitigated by the high renter share in the area, which stands at 50.7%. A dense rental market generally translates into a robust demand for housing vouchers, making it easier to find qualified tenants who can leverage Section 8 assistance. This demand helps ensure a steady stream of potential residents, reducing the impact of vacancy exposure.
The verdict for ZIP 16852 is moderate risk for a first-time Section 8 landlord. While the financial and maintenance challenges are considerable, the strong rental market provides a buffer against some of the downsides.
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.