Location: Huntingdon County, PA | Metro: Huntingdon County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 17253 provides valuable insights into potential investment opportunities for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a two-bedroom apartment in this area, annualized, is set at $970 per month for fiscal year 2026, based on metropolitan standards. Meanwhile, the Census ACS indicates a market rent of $608 per month.
To derive the cap-rate, we first need to calculate the gross yield. For the FMR scenario, using $970 as the monthly rental income, the annual rental income would be $11,640. Given that the median home value is not available, we cannot directly compute the cap-rate. However, we can infer that the gross yield based on the FMR is higher than the market rent, which stands at $608 per month, translating to an annual rental income of $7,296.
The implied gross-yield for the FMR scenario is significantly higher than that of the market rent scenario. This suggests that properties rented under the Section 8 program could potentially offer better returns compared to the general rental market. However, the reality of investment in this ZIP code must also consider other factors such as the 16.4% renter density and the lack of data regarding days on market (DOM).
The lower renter density implies fewer potential tenants in the area, which could affect the occupancy rates and thus the actual income generated. Additionally, the absence of DOM data makes it difficult to assess how quickly properties can be leased, impacting the cash flow and overall investment strategy.
In conclusion, while the Section 8 program offers a higher gross-yield at $11,640 annually compared to the market rent of $7,296, the investment's viability depends heavily on the property's ability to maintain consistent occupancy. Landlords and investors should carefully weigh these factors before making any decisions.
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.