Location: Jefferson County, PA | Metro: Jefferson County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 15711 reveals a complex picture when it comes to Section 8 properties. With the annualized Fair Market Rent (FMR) for a two-bedroom apartment set at $1,100 per month for fiscal year 2026, and the market rent at $833 per month based on Census ACS data, we can infer some key points about potential gross yields.
Using the FMR of $1,100, the annual rental income for a two-bedroom property would be $13,200. Given that the median home value is not available, we cannot calculate an exact cap rate. However, we can estimate the gross yield by considering the average price range for homes in this ZIP code. If we assume an average home price of around $200,000, the implied gross yield using FMR would be approximately 6.6%. This is calculated by dividing the annual rental income ($13,200) by the assumed property value ($200,000).
In contrast, using the market rent of $833, the annual rental income drops to $9,996. Using the same assumed property value of $200,000, the implied gross yield here would be roughly 4.998%, or nearly 5%. This lower yield reflects the actual market conditions where rents are typically below the government-set FMRs.
Given the 15.0% renter density in ZIP 15711, it's important to note that demand for rental properties, including those under Section 8, might be limited. The average Days on Market (DOM) is not available, which makes it difficult to assess how quickly properties can be leased. However, the lower renter density suggests that competition for tenants could be fierce, making the market rent scenario more realistic for most investors.
The difference between a 6.6% gross yield using FMR and a 5% gross yield using market rent highlights the importance of understanding local market dynamics. While FMRs provide a benchmark, they do not necessarily reflect the realities of rental markets, especially in areas with low renter density. Therefore, investors should focus on the market rent of $833 per month to get a clearer picture of potential returns.
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.