Section 8 Fair Market Rent (FMR) for ZIP 15642 - 2027

Investment Score for ZIP 15642

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,070
2 Bedrooms	$1,300
3 Bedrooms	$1,660
4 Bedrooms	$1,800
5 Bedrooms	$2,088
6 Bedrooms	$2,339
7 Bedrooms	$2,526
8 Bedrooms	$2,652

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,300	$189,378	0.69%	D
3BR	$1,660	$268,828	0.62%	D
4BR	$1,800	$430,092	0.42%	F
5BR	$2,088	$516,733	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 15642 (Irwin, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 15642 is set by HUD for 2026, with the following rates: - 0BR: $940 - 1BR: $1010 - 2BR: $1220 - 3BR: $1560 - 4BR: $1680 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in Irwin, PA, are significantly higher. The Zillow median price for a 2BR unit is $178,141, which translates to a monthly rental cost of approximately $1,484 based on typical mortgage calculations. This is nearly 1.2x the FMR for a 2BR unit, indicating that the actual rents are much higher than what the vouchers cover. For voucher holders, this means they will likely need to find units that are below the FMR or negotiate with landlords to accept lower rents, which could be challenging given the high demand and limited supply of affordable housing. #### Affordability & Renter Profile Irwin, PA has a population of 46,325, with 14.8% of residents being renters. The occupancy rate stands at 95.3%, suggesting a relatively tight market where most available units are occupied. The median household income in the area is $97,706, which provides some context for the affordability of housing. A 2BR unit's FMR of $1220 represents about 15.0% of the median income, making it relatively affordable for those earning close to the median. However, the actual rents are much higher, with the Zillow median price translating to a monthly rental cost of $1,484. This suggests that renters in Irwin, PA, are likely to have higher incomes or significant financial resources to afford the higher rents. Given the high occupancy rate and the relatively low percentage of renters, the market appears to be tight, with limited options for those seeking affordable housing. This tightness could be exacerbated by the fact that only 14.8% of the population are renters, meaning there is less competition among landlords to attract tenants, potentially leading to higher rents. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow at the FMR levels. Given the Zillow median price of $178,141 for a 2BR unit, the implied monthly rental cost is $1,484. This is significantly higher than the FMR of $1,220 for a 2BR unit. If an investor were to purchase a property at the median price and rent it out at the FMR, the cash flow would likely be negative unless they can achieve economies of scale or manage costs effectively. The Price-to-FMR ratio of 12.2x indicates that the median home value is far above the FMR, which is a critical factor for investors looking to generate positive cash flow. At this ratio, it is challenging to find properties that can be rented out profitably at FMR levels without substantial subsidies or other financial incentives. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high Price-to-FMR ratio, investors should focus on smaller units such as 0BR or 1BR apartments, which have FMRs of $940 and $1010 respectively. These units are more likely to be rented out at FMR levels due to their lower implied rental costs. 2. **Consider Subsidies and Programs**: Investors might want to explore additional government programs or subsidies that can help bridge the gap between the actual rental costs and the FMR. This could include state-level assistance programs or other federal subsidies that complement Section 8 vouchers. 3. **Target Lower-Income Neighborhoods**: Within Irwin, PA, there may be pockets where the median income is lower than $97,706. Targeting these areas could make it easier to find tenants who can afford the FMR, as the rental cost would represent a smaller percentage of their income. #### Bottom Line Based on the data provided, the recommendation for Section 8-focused investors in ZIP code 15642 (Irwin, PA) is to **skip** this market. The high Price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow without significant subsidies or other financial incentives. Additionally, the limited number of renters (14.8%) and the high occupancy rate suggest that finding suitable tenants willing to rent at FMR levels could be challenging. Investors should consider markets with a lower Price-to-FMR ratio and a higher percentage of renters for better opportunities.

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.