Location: Somerset County, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
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 | $750 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $850 | $108,569 | 0.78% | D |
| 2BR | $1,010 | $157,969 | 0.64% | D |
| 3BR | $1,350 | $211,730 | 0.64% | D |
| 4BR | $1,570 | $226,280 | 0.69% | D |
| 5BR | $1,821 | $285,641 | 0.64% | D |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 15501 (Somerset, PA) for Section 8 investment, follow these steps:
Step 1: Can the FMR of $850 cover the debt service on a $192,155 property?
Yes. The Fair Market Rent (FMR) for ZIP 15501 in fiscal year 2024 is $850. For a property valued at $192,155, this rent amount would typically be sufficient to cover debt service, assuming standard financing terms. Debt service usually includes principal and interest payments on a mortgage. With an average mortgage rate, the monthly payment on such a property would likely fall below $850, making it financially viable under Section 8 guidelines.
No. If the debt service exceeds $850 per month, then the landlord cannot afford to buy a property for $192,155 based on the FMR alone. This scenario would require either a lower purchase price, higher rent, or additional income sources to make the investment profitable.
It Depends. If the debt service is close to $850, the landlord needs to consider other factors such as maintenance costs, vacancy rates, and potential subsidies or incentives that might affect profitability.
Step 2: How does the market rent of $760 compare to the FMR?
Above FMR. If the market rent were above $850, the landlord would have to decide whether to accept the lower FMR set by the government or try to find non-Section 8 tenants willing to pay the higher market rate. In this case, the market rent is below the FMR, so there's no issue with accepting the government-set rent.
At FMR. Not applicable here since the market rent is below the FMR.
Below FMR. The market rent of $760 is below the FMR of $850, which means landlords can expect to receive a higher rent through Section 8 compared to the general market. This difference can provide a buffer against financial risks and help maintain profitability.
Step 3: Is there enough demand with 28.5% renters and N/A-day days on the market (DOM)?
Yes. If the days on the market (DOM) is low, indicating quick turnover, and the rental population is substantial at 28.5%, there is likely sufficient demand to support a Section 8 investment. However, the DOM being listed as N/A suggests incomplete data, which could mean the market is stable or that there are no recent sales to measure DOM accurately.
No. If DOM were high, it would indicate a slow-moving market, which could pose challenges in finding tenants quickly. Given the DOM is N/A, we must rely on the percentage of renters. A 28.5% rental rate is moderate but may still support a Section 8 property if there is a strong local need for affordable housing.
It Depends. The N/A-day DOM leaves uncertainty about the speed of tenant acquisition. Landlords must assess the local housing market and competition to determine if the demand is robust enough to ensure consistent occupancy. Additionally, the percentage of renters indicates a moderate level of demand, but the presence of other factors such as unemployment rates, job availability, and economic stability in Somerset, PA, will also play a role in the overall viability of the investment.
In summary, ZIP 15501 presents a mixed picture for Section 8 investment. The FMR covers debt service, market rent is below FMR, and there is a moderate rental population. However, the lack of DOM data
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.