Location: Indiana County, PA | Metro: Indiana County, PA
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 | $890 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $203,700 | 0.7% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 15771 might have several concerns regarding the feasibility of investing in Section 8 properties. Let's address these concerns directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,020 (for the metro area in fiscal year 2026) cover the mortgage on a home priced at $185,612?
The FMR of $1,020 does not guarantee that it will cover the mortgage on a home valued at $185,612. The mortgage payment depends on various factors including the interest rate, loan term, and down payment amount. For example, if we assume a typical 30-year fixed-rate mortgage with an interest rate of 5% and a 20% down payment, the monthly mortgage payment would be approximately $770. This figure can be covered by the FMR, leaving a buffer for maintenance and other expenses. However, the exact mortgage cost needs to be calculated based on the current rates and financial situation of the investor.
Objection 2: Is there enough renter demand at 10.6%?
The rental demand at 10.6% suggests that a significant portion of the population in ZIP 15771 is already renting. This percentage indicates a stable market for rental properties. However, it's important to note that while 10.6% of the total population is a useful statistic, it doesn't provide a complete picture of the demand for Section 8 housing specifically. To accurately assess the demand, an investor should look at the number of Section 8 vouchers issued in the area and compare that to the total number of rental units available. This data would give a clearer indication of whether the supply meets the demand for subsidized housing.
Objection 3: Will vouchers keep pace with $233 market rents?
The question of whether vouchers will keep pace with market rents of $233 hinges on the adjustment of voucher amounts over time. While the data provided shows the current market rents, it does not offer projections for future adjustments to voucher amounts. Typically, the U.S. Department of Housing and Urban Development (HUD) adjusts FMRs annually to reflect changes in the local housing market. Investors should monitor HUD announcements for any updates to the FMRs in ZIP 15771 to ensure that voucher payments remain aligned with market conditions.
In summary, while the FMR of $1,020 can cover a mortgage on a home priced at $185,612 under certain assumptions, the specific demand for Section 8 housing and the future alignment of voucher amounts with market rents require further investigation. The data provided offers a starting point but does not fully resolve all concerns. Continuous monitoring of local housing trends and HUD adjustments will be crucial for informed investment decisions.
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.