Location: State College, PA | Metro: Altoona, 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 |
|---|---|---|---|---|
| 2BR | $1,270 | $247,162 | 0.51% | F |
| 3BR | $1,590 | $366,321 | 0.43% | F |
| 4BR | $1,680 | $563,303 | 0.3% | F |
| 5BR | $1,949 | $810,042 | 0.24% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 16870, Port Matilda, PA, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1160 per month for the fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental conditions of the area.
In contrast, the local market rent for a two-bedroom unit in ZIP 16870 is lower, averaging $893 according to the Census ACS data. This difference highlights the subsidy provided by the Section 8 program to make housing affordable for low-income tenants.
A landlord participating in the Section 8 program will receive a reimbursement based on the SAFMR minus the tenant's portion of the rent plus any utility allowances. The tenant's portion is typically 30% of their income, which varies depending on the individual's financial situation. For instance, if a tenant's monthly income is $1000, their contribution would be $300 ($1000 * 0.3).
The voucher payment structure works as follows: If the SAFMR is $1160 and the tenant contributes $300, the voucher would cover the remaining $860. However, if the local market rent is only $893, the voucher payment would still be capped at $860, leaving a small surplus for the landlord. In this case, the landlord would receive $860 from the voucher and an additional $33 from the tenant, totaling $893.
If the local market rent were higher than the SAFMR, say $1200, then the landlord would have to absorb the difference between the SAFMR and the actual rent. But in ZIP 16870, where the market rent is below the SAFMR, landlords can expect a modest surplus when renting to a Section 8 tenant.
To summarize, in ZIP 16870, the SAFMR for a two-bedroom apartment is $1160, while the local market rent averages $893. A typical voucher reimbursement would leave a surplus of $33 for the landlord, assuming the tenant's portion is $300. This surplus is due to the market rent being lower than the SAFMR, making Section 8 participation financially viable for landlords in this area.
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.