Location: Johnstown, PA | Metro: Johnstown, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 15722 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $850, while the Census ACS data indicates that the market rent is $746. This means there is a $104 difference, representing approximately a 14% premium for landlords who choose to participate in the Section 8 program.
In this scenario where the FMR exceeds the market rent, it becomes evident that voucher tenants can be a lucrative yield play for landlords. The extra $104 per month above the market rate translates into higher monthly cash flows, making properties in ZIP 15722 particularly attractive for those looking to maximize their rental income. Additionally, the stability and predictability of payments through the voucher system can offer a reliable revenue stream, reducing the risk associated with tenant defaults.
The ZIP code 15722 has an 8.1% rental occupancy rate, indicating that a relatively small portion of the population is renting. With a median home value of $97,202 and a median income of $68,068, the economic profile suggests that homeownership is more prevalent and affordable for many residents. However, for the smaller segment of the population that relies on rental housing, the Section 8 program offers a critical lifeline, allowing them to afford housing in a potentially otherwise unattainable market.
Participating in the Section 8 program in ZIP 15722 is advantageous for landlords due to the financial benefits derived from the higher FMR compared to the market rent. These benefits can offset the administrative costs and time involved in managing voucher tenants, making it a sound investment strategy for those interested in maximizing their returns in this specific market.
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.