Location: Tioga County, PA | Metro: Potter County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 16950 (Westfield, PA) for Section 8 investments, follow these steps:
Step 1: Does FMR $970 (metro FY 2026) clear debt service on a $182,530 property?
No. The Fair Market Rent (FMR) of $970 does not cover the debt service on a $182,530 property. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the median home price and typical interest rates, the monthly debt service would likely exceed $970, making it unprofitable without additional subsidies or income sources.
It depends. If you can acquire the property for less than $182,530, or if you qualify for significant tax benefits or other subsidies that reduce your effective debt service, then the FMR might be sufficient. However, based on the given data, this is unlikely to be the case for most properties in this price range.
No. Even if you find a property well below the median price, the FMR of $970 may still not be enough to clear debt service due to other associated costs such as property taxes and insurance.
Step 2: Is market rent $679 (Census ACS) above, at, or below FMR?
Below. The market rent of $679 is below the FMR of $970, indicating that tenants receiving Section 8 vouchers could pay more than what the market currently demands. This suggests potential for higher occupancy rates but also means landlords might miss out on higher market rents if they focus solely on Section 8.
Step 3: Are 20.1% renters + N/A-day DOM enough demand?
No. With only 20.1% of residents being renters and the lack of data on days on market (DOM), there is insufficient evidence to suggest strong rental demand. A low percentage of renters combined with an unknown DOM indicates a potentially slow-moving market where finding tenants might be challenging.
It depends. If the area has a growing population or increasing job opportunities, the rental demand could rise. However, without specific DOM data, it's hard to gauge how quickly properties are rented out. Additionally, the percentage of renters is relatively low, which could limit the pool of potential Section 8 tenants.
No. In the absence of strong market indicators and with a low percentage of renters, the demand for rental properties, including those suitable for Section 8, is weak. This makes it a risky investment without further market research or changes in local demographics and economics.
In conclusion, based on the provided data, investing in ZIP code 16950 for Section 8 properties is generally not advisable unless you can significantly reduce the cost basis or expect changes in local demand factors.
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.