Location: Indiana County, PA | Metro: Johnstown, PA MSA
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 | $760 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $117,324 | 0.86% | C |
| 3BR | $1,400 | $169,728 | 0.82% | C |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP 15724 (Cherry Tree, PA) for Section 8 properties hinges on three key factors: the Fair Market Rent (FMR), the relationship between FMR and market rent, and the rental demand.
1. Does FMR of $950 cover the debt service on a $129,140 property?
Yes: The FMR of $950 is sufficient to cover the debt service on a property valued at $129,140. This indicates that the rental income can support the mortgage payments and other expenses associated with owning the property.
No: If the debt service exceeds $950 per month, then the FMR will not be enough to sustain the financial obligations of the property. In this case, investing in ZIP 15724 would not be advisable based solely on the FMR coverage.
It Depends: If the debt service is close to $950 but slightly higher, landlords might consider additional revenue streams or cost-saving measures to ensure the property remains financially viable.
2. Is market rent of $919 above, at, or below FMR?
Above: If the market rent were above $950, it would suggest strong demand and potentially higher profitability beyond Section 8 limits. However, since the actual market rent is $919, this scenario does not apply.
At: Not applicable as the market rent is lower than the FMR.
Below: The market rent of $919 is below the FMR of $950, indicating that Section 8 rents are higher than what the market typically offers. This could be advantageous if securing tenants through Section 8 is a priority.
3. Are 13.2% renters and N/A-day days on market (DOM) enough demand?
Yes: With 13.2% of residents being renters, there is a steady demand for rental properties. The lack of data on days on market (DOM) suggests that properties may be rented quickly once listed, which is favorable for maintaining consistent cash flow.
No: If the percentage of renters were significantly lower, or if the DOM indicated long periods before properties were rented, then the demand would not be strong enough to justify investment. However, given the 13.2% figure, this branch does not apply.
It Depends: The decision could hinge on other local economic factors such as job availability, population growth, and competition from other rental units. Without specific DOM data, landlords must assess these additional factors to determine if the demand is robust enough.
In conclusion, ZIP 15724 presents an opportunity where the FMR can cover debt service on a property valued at $129,140, and the market rent is below the FMR, making it attractive for Section 8 tenants. Additionally, the rental rate of 13.2% implies a stable tenant base, though the absence of DOM data necessitates further investigation into local market conditions.
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.