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 | $1,380 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,150 | $312,218 | 0.69% | D |
U.S. Census Bureau data (2024)
The ZIP code 16868 in Pennsylvania has a median home value of $304,982, with a Fair Market Rent (FMR) of $1,490 for fiscal year 2024. The local market rent stands at $1,188, indicating a slight premium for Section 8 properties compared to the general market. With 8.9% of residents being renters, the market has a relatively low percentage of renters, which suggests limited demand from transient populations.
The median household income is $180,412, which is quite robust and supports higher rental rates. However, the lack of data on the average days on market (DOM) makes it challenging to assess the stability of the rental market. Despite this, the strong income levels suggest that tenants are likely to be financially stable, reducing the risk of default.
Classification: ZIP 16868 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The FMR is notably above the market rent, but the home values are also significantly higher, suggesting that the potential for quick flips is limited. The robust income levels support consistent rental payments, making it a safer bet for long-term investments.
To summarize, the combination of a slightly higher FMR, strong household incomes, and limited transient population points to a stable rental market with moderate yields. Landlords and small-portfolio investors should expect reliable cash flows but may need to balance against higher acquisition costs.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.