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 | $1,140 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,760 | $223,535 | 0.79% | D |
U.S. Census Bureau data (2024)
The ZIP code 16853 stands out due to its unique demographic and economic characteristics. With only 242 residents, it is among the smallest ZIP codes in terms of population. However, despite its small size, 27.7% of these residents are renters, indicating a significant portion of the housing market dedicated to rental properties. The median home value in ZIP 16853 is notably high at $212,621, suggesting that homeownership is relatively expensive in this area. Unfortunately, the median income data for this ZIP code is not available, which complicates a full analysis of the financial landscape.
Moving into the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 16853 for fiscal year 2024 is set at $1,160. This figure represents the government's estimate of the average rent for a standard two-bedroom apartment in the area. In contrast, the actual market rent, based on Census American Community Survey (ACS) data, is $1,358. This discrepancy means that landlords accepting Section 8 vouchers might see a slight reduction in rental income compared to market rates, but the gap is not excessively large, making it a viable option for many.
Considering the data signature of ZIP 16853, it can be classified as stable. The high median home value suggests a consistent demand for housing, while the significant percentage of renters indicates a steady need for rental properties. Although the exact median income is unknown, the presence of Section 8 vouchers implies some level of economic diversity. For landlords and small-portfolio investors, this ZIP code presents an opportunity to serve a niche market with a reliable source of rental income, albeit slightly below market rates. The stability of the area also reduces the risk of sudden changes in the housing market, providing a secure investment environment.
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.