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 | $970 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $161,473 | 0.95% | C |
U.S. Census Bureau data (2024)
The classification of ZIP code 15542 reveals a unique blend of yield and stability that is neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone, but rather a middle-ground opportunity. With a Fair Market Rent (FMR) of $1,260 for fiscal year 2026, the metro area provides a higher rental income potential compared to the market rate of $710. This suggests a yield advantage when considering properties for rental purposes.
However, the median home value at $148,097 indicates a lower investment barrier, which can be attractive for smaller portfolio investors looking to enter the market without substantial capital outlay. The average income of $58,393 in the area supports a moderate level of affordability for renters, balancing the higher FMR with realistic tenant expectations.
On the stability axis, the data presents a mixed picture. Only 6.7% of the population are renters, which points to a relatively low demand for rental units and could imply less consistent cash flow. The lack of available data on days on market (DOM) suggests that there might be inefficiencies in the local real estate market, or it could indicate a stable environment where listings are either quickly rented or there's limited turnover.
In summary, ZIP 15542 offers a modest yield benefit with a fair market value for homes, making it suitable for investors seeking a balance between potential returns and market stability. The low percentage of renters and the unknown DOM factor introduce elements of risk, but the higher FMR compared to the market rate and the reasonable home values present an opportunity for steady cash flow, albeit not at the highest possible yields.
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.