Location: Northumberland County, PA | Metro: Columbia 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 | $860 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,690 | $242,520 | 0.7% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 17847 provides a clear picture of potential investment returns based on the Fair Market Rent (FMR) and market rent figures. Using the annualized 2BR FMR of $1030 for fiscal year 2024, we can calculate the implied gross yield. The annual rental income at this rate would be $12,360 ($1030 x 12 months). Given the median home value of $220,846, the implied gross yield for a Section 8 property in this ZIP code is approximately 5.60%. This calculation is straightforward and does not account for operating expenses, which are typically considered in a Net Operating Income (NOI) analysis.
Contrastingly, if we use the market rent figure of $1,225 per month (ZORI), the annual rental income increases to $14,700 ($1,225 x 12 months). With the same median home value of $220,846, the implied gross yield for a market-rent property rises to about 6.66%. This higher yield reflects the potential for greater income from properties rented at market rates compared to those under the Section 8 program.
The 34.4% renter density suggests that while there is a significant portion of renters in ZIP 17847, it is not overwhelmingly high. This percentage indicates that nearly one-third of residents are tenants, which is important for understanding the demand for rental properties. However, the lack of data on days on market (DOM) makes it challenging to assess how quickly properties might be leased, particularly under Section 8. Despite this, the gross yield comparison clearly shows that renting at market rates yields a higher return than renting through the Section 8 program.
In conclusion, the gross yield for a Section 8 property in ZIP 17847 is approximately 5.60%, while renting at market rates yields about 6.66%. These figures provide a direct comparison for investors considering the two options. While the Section 8 program offers stability and a guaranteed tenant base, the market rent scenario presents a higher gross yield, aligning better with the typical investment strategy of maximizing returns.
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.