Location: Somerset County, PA | Metro: Somerset County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap rates for ZIP code 15555 reveals some critical insights for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $970 per month. To annualize this figure, we multiply it by 12, resulting in an annualized FMR of $11,640.
Given that the median home value is not available, we cannot calculate a precise gross yield for the market rent scenario. However, we can still provide a comparative analysis based on the available data.
In the case of using the annualized FMR of $11,640, the implied gross yield can be calculated if we assume a typical home value for the area. For instance, if we estimate a median home value of $250,000, the gross yield would be approximately 4.66%. This calculation is derived by dividing the annual rental income ($11,640) by the property's value ($250,000).
The lack of data regarding market rent and median home value makes it challenging to provide a direct comparison. However, considering the 0.0% renter density in the area, it is evident that there is a low demand for rental properties, which suggests that relying solely on the FMR might overestimate the potential rental income. A lower gross yield is likely more realistic given these conditions.
Additionally, the absence of Days on Market (DOM) data implies that there is limited activity in the rental market, further supporting the idea that market rents may be lower than the FMR. Landlords and investors should take these factors into account when evaluating potential returns on investment in ZIP 15555.
To summarize, while the FMR provides a baseline for rental income, the actual gross yield is likely to be lower due to the low renter density and limited market activity. Investors should conduct thorough local market research to determine a more accurate gross yield for their specific property.
Data Sources: FMR data from HUD (2027). 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.