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)
A skeptical investor looking into ZIP 15737 might raise several concerns regarding the feasibility of investing in properties here. Let's address these concerns with available data.
Objection 1: Will FMR $850 (zip FY 2024) cover the mortgage on a home?
The provided data does not specify the average home price in ZIP 15737, which is necessary to calculate potential mortgage payments. However, the Fair Market Rent (FMR) set at $850 for 2024 suggests that the rental income can be competitive if the mortgage costs align with typical local home prices. To make an informed decision, it's essential to research the average home value in the area and compare it against the FMR.
Objection 2: Is there enough renter demand at 6.5%?
The data indicates that rentals in ZIP 15737 are predominantly 2-bedroom units, with monthly rents typically ranging from $500 to $749. This range is below the FMR, suggesting that there could be strong demand at the 6.5% vacancy rate. Lower vacancy rates often indicate higher demand for rental properties, making it likely that landlords can achieve occupancy levels close to the FMR without difficulty. However, the exact percentage of vacancy is not provided, so further investigation into local rental market trends would be advisable.
Objection 3: Will vouchers keep pace with market rents?
The Fair Market Rent data provided by HUD shows that the FMR for ZIP 15737 is set at $850 for FY 2024. This figure is designed to reflect the market conditions and ensure that voucher holders can access a reasonable range of rental options. Given that the typical rent range in ZIP 15737 is lower than the FMR, it suggests that vouchers should adequately cover the cost of renting a property in this area. However, the specific dynamics of voucher usage in ZIP 15737, such as the number of vouchers issued and their distribution among different types of properties, would require additional research to fully assess.
In summary, while the data supports the potential for strong rental demand and fair coverage of mortgage costs through rental income, the specifics regarding home prices and precise vacancy rates are not fully addressed. It is recommended to conduct further localized analysis to confirm these points before making investment decisions.
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.