Location: Schuylkill 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 | $710 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $226,401 | 0.59% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 17967 reveals interesting insights into potential investment yields. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $1060 annually for FY 2024, and the market rent at $758 per month as reported by the Census ACS, we can derive two gross-yields against the median home value of $217,470.
First, using the annualized FMR of $1060, the implied gross-yield for a Section 8 property would be approximately 0.58%. This is calculated by taking the annual rent ($1060) and dividing it by the median home value ($217,470). On the other hand, using the market rent figure of $758 per month, the implied gross-yield is significantly higher at about 4.37%. This calculation takes the monthly rent ($758), multiplies it by 12 months to get an annual figure, and then divides that by the median home value ($217,470).
The stark difference between these two yields highlights the financial disparity between relying solely on Section 8 rents versus market rents. Given the 10.2% renter density in ZIP 17967, it's evident that the majority of homeownership is not occupied by renters, suggesting a limited pool of potential Section 8 tenants relative to the overall housing stock. Furthermore, the N/A-day DOM (days on market) indicates that properties in this area either sell quickly or there isn't sufficient data to determine an average days-on-market figure, which could imply strong demand or a lack of listings.
Considering these factors, the market rent yield of 4.37% is more likely to represent a realistic scenario for most investors. However, the decision to participate in the Section 8 program should also take into account the stability of rental income, which is guaranteed by the government, and the potential for long-term tenancy, which can provide consistent cash flow despite the lower gross-yield of 0.58%. Investors must weigh these benefits against the operational complexities and regulatory requirements associated with Section 8 properties.
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.