Location: Somerset County, PA | Metro: Somerset 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 | $830 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $188,325 | 0.6% | D |
| 3BR | $1,500 | $224,685 | 0.67% | D |
| 4BR | $1,740 | $240,187 | 0.72% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 15541, located in Friedens, PA within the Somerset County, PA metro area, reveals several key points regarding its viability for real estate investment under the Section 8 program.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990. However, the current market rent based on Census ACS data stands at $919. This indicates that landlords might struggle to fully cover their costs if they rely solely on the Section 8 payment standard, which is lower than the actual market rent.
Regarding the affordability of acquisitions, the median home value in ZIP 15541 is $200,784. Unfortunately, the data on the number of days on market (DOM) and the percentage of homes requiring price cuts is not available. Without these figures, it's challenging to assess the ease or difficulty of acquiring properties at a reasonable cost.
Lastly, the tenant demand must be considered. The total population of ZIP 15541 is 3,112, with 12.4% of residents being renters. This suggests a limited pool of potential tenants, which could make it difficult to maintain a steady occupancy rate.
In conclusion, while the median home value in ZIP 15541 presents an opportunity for acquisition, the lower FMR compared to the market rent poses a financial challenge for landlords. Additionally, the small population and low renter share imply that tenant demand is modest. These factors collectively suggest that investing in this ZIP code under the Section 8 program would require careful consideration and possibly a focus on cost management and strategic property selection to ensure profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.