Location: Northumberland County, PA | Metro: Northumberland County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 17866 reveals interesting insights for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2026 is set at $970 per month, while the Census ACS reports a market rent of $745 per month.
To understand the gross yield, let's annualize these figures. With an FMR of $970 per month, the annualized rent would be $11,640. Against the median home value of $69,838, this implies a gross yield of approximately 16.7%. This calculation is based on the assumption that the property could be rented out for the full FMR amount.
In contrast, if we consider the market rent of $745 per month, the annualized rent would be $8,940. This results in a gross yield of about 12.8% when compared to the median home value. This figure represents a more conservative estimate based on typical rental rates observed in the area.
Given the 20.2% renter density in ZIP 17866, it is important to note that a significant portion of potential tenants might be seeking subsidized housing options. This makes the Section 8 scenario more plausible, as it aligns with the higher proportion of renters who may rely on government assistance.
The N/A-day DOM (Days on Market) indicates incomplete data, suggesting either a very low turnover rate or a lack of recent transactions that could provide insight into the local rental market dynamics. However, considering the higher renter density and the fact that many tenants may be looking for affordable housing solutions, the Section 8 scenario with a gross yield of 16.7% appears more realistic.
This does not mean that achieving this gross yield is guaranteed; it depends on various factors including the availability of Section 8 vouchers and the willingness of landlords to participate in the program. Nonetheless, for those willing to engage with the Section 8 program, the potential for a higher gross yield is evident.
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.