Location: Jefferson County, PA | Metro: Jefferson County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 15770 reveals some key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $970 per month. However, the median home value and market rent figures are not available, complicating a direct comparison.
In the scenario where we use the FMR of $970 per month, the annualized rent would be $11,640. Given that the median home value is not available, we cannot calculate an exact cap rate. However, if we assume a hypothetical median home value, say $200,000 for illustrative purposes, the implied gross yield would be 5.82%. This is calculated by taking the annual rent ($11,640) and dividing it by the property value ($200,000).
Without the market rent figure, we can only speculate based on the FMR. The FMR represents the maximum rent a landlord can charge for a Section 8 tenant, and it often does not reflect the actual market conditions. Therefore, using the FMR alone to gauge potential returns might overstate the yield for investors looking at market performance.
The renter density in ZIP 15770 stands at 5.9%, indicating a relatively low demand for rental properties compared to owner-occupied homes. This suggests that landlords should carefully consider the supply and demand dynamics before investing in rental properties through the Section 8 program. Additionally, the Days on Market (DOM) figure is not available, which would have helped us understand how quickly properties are rented out in this area.
In conclusion, while the FMR-based gross yield of 5.82% provides a starting point for analysis, it is important to note that this figure assumes the hypothetical median home value of $200,000. For a more accurate assessment, investors should seek the most recent market rent data and local real estate values to determine the true cap rate and gross yield. The low renter density further emphasizes the need for thorough research into the local rental market trends.
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.