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 | $780 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $150,523 | 0.69% | D |
| 3BR | $1,380 | $183,976 | 0.75% | D |
| 4BR | $1,600 | $189,104 | 0.85% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 15558, Salisbury, PA, reveals some interesting insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in the area is set at $1,010 annually for fiscal year 2026. This figure is based on the metropolitan guidelines and represents the government's payment standard for Section 8 housing vouchers.
To calculate the implied gross yield, we first annualize the FMR. At $1,010 per month, the annual rental income would be $12,120. Dividing this by the median home value of $170,850 gives us an implied gross yield of approximately 7.1%. This calculation assumes that the property can be rented out at the FMR rate, which is the maximum amount the government will pay under the Section 8 program.
On the other hand, the market rent for a 2-bedroom apartment in Salisbury, PA, is reported at $839 per month according to the Census ACS data. Annualizing this market rent gives us $10,068. When we divide this by the median home value, the implied gross yield drops to about 5.9%. This lower yield reflects the actual rental market conditions in the area, where landlords might face competition and need to offer rents below the FMR to attract tenants.
Given the 24.3% renter density in Salisbury, PA, it is clear that a significant portion of the population relies on renting. However, the lack of data on days on market (DOM) makes it challenging to assess how quickly properties might be filled. Despite this, the market rent scenario appears more realistic for most landlords and small-portfolio investors. While the FMR provides a higher gross yield, it does not account for the realities of the local rental market, including the possibility of vacancies and the need to compete with other rental properties.
In conclusion, while the Section 8 program offers a higher rental income at 7.1% gross yield, the actual market conditions suggest a more realistic gross yield of 5.9%. Landlords should consider these figures when evaluating the potential returns of their investments in Salisbury, PA.
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.