Location: Tioga County, PA | Metro: Tioga County, PA
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 | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $221,472 | 0.47% | F |
| 3BR | $1,310 | $265,176 | 0.49% | F |
| 4BR | $1,370 | $294,142 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 16935, centered around Middlebury, PA, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,040, whereas the Census ACS reports the market rent at $1,375. This means there is a $335 difference, which translates into a 32.2% gap between what landlords can charge voucher tenants and the open-market rental rates.
Given that the FMR is lower than the market rent, it becomes evident that landlords who participate in the Section 8 program must accept a lower rental rate than they could potentially earn in the open market. This scenario presents a challenge for landlords looking to maximize their rental income. However, the participation in Section 8 can still be attractive due to the guaranteed payments from the government, which ensures steady cash flow even if the per-unit income is less than the market rate.
Middlebury, PA has a median home value of $241,309 and a median income of $63,125. With only 10.9% of residents being renters, the demand for rental properties is relatively low compared to other areas. This low rental population percentage suggests that landlords might face competition from homeownership opportunities, making it important to understand the financial implications of accepting Section 8 vouchers.
To illustrate the cost of housing voucher tenants below open-market rates, consider the following:
The $335 shortfall per month represents a substantial loss over the course of a year. For a landlord with multiple units, this can significantly impact overall profitability.
The 32.2% discount on market rent indicates that landlords are leaving money on the table, but they are also mitigating risk associated with tenant payment defaults and vacancy rates.
In conclusion, while the FMR in ZIP 16935 is notably lower than the market rent, the benefits of consistent government-backed payments and reduced tenant turnover can outweigh the lower rental income for some landlords. This analysis should help small-portfolio investors decide whether the yield from Section 8 properties aligns with their investment goals in Middlebury, PA.
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.