Location: Bradford County, PA | Metro: Bradford 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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,490 | $231,444 | 0.64% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 18854 reveals key insights into potential investment opportunities for landlords and small-portfolio investors. Using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment set at $1,210 for FY 2026 and the Census ACS-reported market rent of $944, we can derive the implied gross yields.
First, let's consider the scenario using the Section 8 FMR. The annual rental income at $1,210 per month would be $14,520. Dividing this by the median home value of $193,782 gives an implied gross yield of approximately 7.5%. This calculation assumes that the property is rented out at the FMR rate, which is often higher than the market rate due to government subsidies.
Next, using the market rent figure of $944 per month, the annual rental income drops to $11,328. When this amount is divided by the median home value, the implied gross yield decreases to about 5.8%. This scenario reflects the typical rental income without any additional subsidies, giving a clearer picture of the market conditions.
Given the 22.4% renter density in ZIP 18854, it is important to note that the number of days on the market (DOM) is listed as N/A, which could indicate either very low turnover or limited data availability. In such a case, the market rent scenario is more realistic for most investors. The higher implied gross yield from the FMR scenario is attractive, but it depends heavily on securing Section 8 tenants, which can be challenging due to the limited number of available vouchers and the strict eligibility criteria.
Investors should weigh the benefits of the potentially higher gross yield from the FMR scenario against the practical challenges of finding and retaining Section 8 tenants. The market rent scenario provides a more stable and predictable income stream, making it a safer bet for those looking to minimize risk in their investment portfolio.
In conclusion, while the Section 8 FMR offers a higher gross yield of 7.5%, the more realistic market rent scenario yields around 5.8%. Given the specific context of ZIP 18854, the latter scenario should be considered more reliable for most investment strategies.
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.