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 | $760 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $124,281 | 0.83% | C |
| 3BR | $1,360 | $153,154 | 0.89% | C |
| 4BR | $1,580 | $170,360 | 0.93% | C |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 15552, Meyersdale, Pennsylvania, might raise several concerns regarding the feasibility of investing in Section 8 properties. Let's address these objections with the available data.
Will FMR $970 (metro FY 2026) cover the mortgage on a $142,680 home?
The Fair Market Rent (FMR) for a one-bedroom unit in the Meyersdale metro area for fiscal year 2026 is set at $970. To determine if this will sufficiently cover a mortgage payment on a $142,680 home, we need to consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly mortgage payment for a $142,680 home would be approximately $700. This amount is well below the FMR, indicating that the rent can indeed cover the mortgage with a significant margin left over for maintenance and other expenses.
Is there enough renter demand at 22.4%?
The percentage of renter-occupied housing units in ZIP 15552 stands at 22.4%. This figure suggests that while the majority of residents own their homes, there is still a notable portion of the population that relies on rental properties. However, the data does not provide a complete picture of the specific demand for Section 8 rentals. To make a fully informed decision, additional research into the local housing authority's waitlist and the number of active voucher holders would be necessary. The 22.4% rate implies a moderate level of rental activity, but it's essential to understand how much of that demand is subsidized.
Will vouchers keep pace with $692 market rents?
The current market rent for a one-bedroom unit in ZIP 15552 is $692, which is notably lower than the FMR of $970. This discrepancy indicates that the voucher amounts should theoretically cover the market rents, leaving some room for profit. However, the effectiveness of vouchers in covering actual market rents can vary based on the local housing authority's policies and funding levels. As of now, the data does not specify the exact voucher amount for the area, but given the current market rent is below the FMR, it's reasonable to expect that vouchers will cover the cost. For a definitive answer, one would need to consult the local housing authority for specific voucher payment details.
In summary, while the FMR of $970 provides a comfortable cushion above the mortgage payment for a $142,680 home, the 22.4% renter occupancy rate suggests a moderate demand for rentals. The market rent of $692 is lower than the FMR, implying that vouchers should cover the costs, though precise voucher amounts require further investigation.
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.