Location: Huntingdon County, 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 | $1,080 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $311,034 | 0.57% | F |
| 4BR | $2,010 | $398,672 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 16877 reveals a mixed picture for landlords and small-portfolio investors considering Section 8 participation. Firstly, the rent math does not favor landlords. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1170, while the average market rent reported by the Census ACS stands at $1,034. This indicates that landlords participating in Section 8 could face a shortfall of $136 per unit, making it less profitable compared to market rents.
Secondly, the acquisition cost of properties is relatively low, with a median home value of $313,436. However, the lack of data on Days on Market (DOM) and the percentage of homes needing price cuts suggests limited insight into how quickly homes sell and at what price point. This ambiguity can pose challenges in assessing the affordability of acquiring new rental units in this area.
Lastly, the tenant demand appears modest. With a total population of 1,524, only 13.4% are renters. This means there are approximately 204 potential tenants in the area, which may limit the pool of applicants for Section 8 properties. Landlords should be prepared for possibly lower occupancy rates and competition among themselves for these few renters.
In conclusion, ZIP 16877 presents a scenario where the financial incentives of Section 8 participation are outweighed by the mismatch between FMR and market rents, indicating a less favorable environment for profit. Although property acquisition costs are reasonable, the limited tenant demand and lack of clear market performance indicators suggest that investment in this area requires careful consideration. Landlords should weigh the reduced profitability against the stability and long-term benefits of Section 8 tenancy before committing to this market.
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.