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 | $1,290 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,660 | $262,564 | 0.63% | D |
| 4BR | $1,700 | $331,812 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 16872 stands out in County XX due to its unique demographic and economic characteristics. With a population of 1,430 residents, it has a rental rate of 27.9%, indicating that nearly a third of the housing units are rented. The median income here is $72,708, which is relatively high compared to other ZIP codes in the county. Additionally, the median home value is $271,247, reflecting a significant investment in residential property.
When it comes to voucher economics, the Fair Market Rent (FMR) for ZIP 16872 in fiscal year 2024 is set at $1,160. This is slightly higher than the market rent of $1,082 reported by the Census Bureau's American Community Survey. For landlords and small-portfolio investors, this means that the government subsidy through Section 8 vouchers can help cover the gap between the market rate and the FMR, ensuring a steady stream of income without having to rely solely on tenants' ability to pay the full market rent.
The data signature for ZIP 16872 reads as stable. The relatively high median income suggests financial stability among the residents, while the median home value indicates a robust real estate market. The slight premium of the FMR over the market rent also supports a stable environment where landlords can benefit from the Section 8 program without facing significant financial risks.
For those interested in the specifics of the rental market, the following points highlight the dynamics:
In conclusion, ZIP 16872 presents a stable environment for landlords and investors considering participation in the Section 8 program. The economic indicators suggest a consistent demand for rental properties, supported by a reasonable gap between FMR and market rents.
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.