Location: State College, PA | Metro: State College, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
The market in ZIP code 16856 presents a dynamic scenario that is indicative of ongoing housing pressures. With a Fair Market Rent (FMR) of $1320 for fiscal year 2024, landlords and small-portfolio investors should be aware of the rental landscape that is currently defined by limited data on market rents and days on market (DOM).
The significant renter share of 54.3% suggests a strong reliance on rental properties, which can be interpreted as a long-term signal of housing demand. This high percentage of renters often indicates a population that may face challenges in accessing homeownership, possibly due to economic factors, lifestyle choices, or other considerations. As a result, the demand for rental units remains robust, creating an environment where landlords can potentially maintain or even increase their rental rates without significantly impacting occupancy.
However, the lack of specific data on price-cut shares and DOM implies a market that is somewhat opaque in terms of recent trends. This could mean that the market is stable but also that there is little new information available to gauge the immediate supply and demand balance. In such a scenario, landlords and investors must rely on the broader context of the ZIP code's demographics and economic conditions to make informed decisions.
The absence of a median home value also points to a market that is heavily skewed towards rentals rather than homeownership. This characteristic can be both a challenge and an opportunity for investors. It poses a challenge in understanding the overall property values and how they might influence rental prices. On the other hand, it highlights the importance of rental properties in the area, which could be a sign of continued demand for well-managed and maintained rental units.
In summary, ZIP code 16856 appears to be a market where demand for rental properties is likely to remain steady, driven by a high proportion of renters. The FMR of $1320 provides a benchmark for rental pricing, but the scarcity of recent data on market rents and DOM means that investors should be cautious and vigilant in monitoring local market conditions. The dynamics of this market suggest a reliance on rental housing that is unlikely to change in the near future, making it a potentially attractive investment for those focused on the rental sector.
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.