Location: Potter County, PA | Metro: Potter County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 16937 reveals some critical insights for landlords and small-portfolio investors. With the annualized Fair Market Rent (FMR) for a two-bedroom apartment set at $1,090 for fiscal year 2026, it's essential to consider how this figure impacts potential investment yields.
In the scenario where the median home value is known but not provided here, the implied gross yield can be calculated based on the rental income generated by a Section 8 voucher. For ZIP 16937, the annual rental income would be $13,080 ($1,090 x 12 months). If we assume a median home value of, say, $200,000 (for illustrative purposes), the gross yield would be 6.54%. This calculation is straightforward: divide the annual rental income by the property value. However, without the actual median home value, this remains an estimate.
When considering the market rent, the situation is less clear due to the lack of available data. The absence of market rent figures makes it impossible to derive a precise gross yield for comparison. Nevertheless, it's important to note that the 0.0% renter density indicates a low demand for rental properties in this area. This statistic suggests that landlords might face challenges in finding tenants willing to pay market rates, thus making the Section 8 program more attractive for securing steady rental income.
The Days on Market (DOM) figure being N/A also points to a lack of activity in the rental market, which could imply that properties listed for rent are either quickly leased or rarely come up for lease at all. In such a scenario, the reliability of Section 8 vouchers as a source of consistent income becomes even more pronounced.
In conclusion, the gross yield derived from the Section 8 FMR is more concrete and realistic compared to the unknown market rent scenario. Given the low tenant density and uncertain market conditions, the guaranteed income from Section 8 vouchers offers a safer bet for landlords and small-portfolio investors looking to enter ZIP 16937.
Data Sources: FMR data from HUD (2027). 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.