Location: Indiana County, PA | Metro: Indiana County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 15705 provides insight into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2026 is set at $980 per month. This figure is based on the metro-level FMR and is crucial for understanding the rental income that can be expected under the Section 8 program.
To derive the cap rate, we need to compare the FMR against the market rent and the median home value. However, the market rent and median home value for ZIP 15705 are currently not available. Without these figures, it's challenging to provide a precise cap rate or gross yield. But we can still discuss the implications of the FMR in relation to typical investment scenarios.
In a standard investment scenario where market rent is higher than the FMR, the cap rate would generally be lower due to the reduced rental income. For instance, if the market rent were significantly above $980, the gross yield derived from the FMR would be less attractive. Conversely, if the market rent aligns closely with the FMR, the cap rate would be more favorable, reflecting a higher gross yield.
Given the lack of specific market rent data, we cannot definitively state whether the FMR represents a realistic rental scenario. However, the absence of median home value data further complicates the analysis. Typically, a lower median home value would imply a higher cap rate, assuming a stable demand for rentals. In ZIP 15705, the renter density and days on market (DOM) are also unspecified, which are key indicators of how quickly units can be leased and the competition faced by landlords.
Despite these limitations, the $980 FMR provides a benchmark for rental income expectations under Section 8. Investors should consider this figure alongside local market conditions and their own property values to estimate the gross yield. While the exact cap rate cannot be calculated without additional data, the FMR offers a starting point for assessing the financial viability of properties in this ZIP code.
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.