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 |
|---|---|---|---|---|
| 3BR | $1,590 | $218,128 | 0.73% | D |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 16859 suggests a balanced market with implications for both short-term pricing power and long-term investment potential. The median home value stands at $215,443, indicating a modest price point that could appeal to first-time buyers and investors alike.
With no specific percentage of listings being reduced and the median days on market (DOM) also marked as N/A, it's reasonable to infer a stable market condition where neither sellers nor buyers have significant leverage. This stability is further reinforced by the lack of downward pressure on prices, which would typically be indicated by a higher number of reduced listings or extended DOM periods.
Moving to the rental side, the Fair Market Rent (FMR) for ZIP 16859 is set at $1160 for the fiscal year 2024. Given the absence of comparative market data for the current period, this figure serves as a benchmark for rental expectations. It signals that the area maintains a consistent demand for rental properties, which can support long-term holding strategies for investors.
For long-hold investors, the setup points towards a realistic appreciation thesis based on the stability of the housing market and the steady rental income. However, the lack of detailed historical data makes it challenging to project robust appreciation rates. Instead, the focus should be on maintaining properties to ensure they meet the rental market standards and capitalizing on any gradual increase in property values driven by broader economic factors and local demand trends.
In summary, the current market conditions in ZIP 16859 imply a scenario where landlords and small-portfolio investors can expect moderate pricing power and stable rental returns. While there isn't a strong case for rapid appreciation, the combination of a reasonable median home value and established rental benchmarks supports a conservative growth strategy.
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.