Location: Jefferson 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 | $880 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $135,438 | 0.89% | C |
| 3BR | $1,670 | $160,186 | 1.04% | B |
U.S. Census Bureau data (2024)
In ZIP code 15772, which encompasses Rossiter, PA in Indiana County, the Section 8 program operates under specific economic parameters that directly impact landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,180. This figure represents the maximum amount that the housing authority will pay towards rent for a two-bedroom unit in this area.
Contrastingly, the local market rent for a similar two-bedroom apartment, according to Census ACS data, is approximately $925. This discrepancy highlights the potential financial benefits of accepting Section 8 tenants, as the reimbursement rates are higher than the prevailing market rates.
The actual payment received by a landlord from a Section 8 voucher is determined by the tenant's portion of the rent plus any utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income toward rent. If we assume an average adjusted income for a household in this area, the tenant's portion might be around $354, based on a hypothetical household income of $1,180 (this is for illustrative purposes; actual amounts will vary).
The remaining balance is then covered by the housing authority, up to the SAFMR limit. In this scenario, the housing authority would cover the difference between the tenant's contribution and the SAFMR, which comes out to $826. Additionally, utility allowances are provided to cover electricity, gas, water, and sewage. These allowances can range widely but often add another $200-$300 to the total monthly reimbursement.
Therefore, a landlord in ZIP 15772 can expect a total reimbursement of roughly $1,026-$1,126 per month for a two-bedroom apartment when all factors are considered. Given that the local market rent is $925, this means landlords could see a surplus of $101-$191 per month over and above the market rate.
This surplus provides landlords with a buffer against the risks associated with renting to low-income households, including potential delays in receiving rental payments. However, it also underscores the importance of understanding the specific terms of the Section 8 contract and the local housing authority's policies regarding rent increases and maintenance standards.
To summarize, the economics of Section 8 in ZIP 15772 favor landlords with a higher reimbursement rate compared to the local market rent, leading to a positive cash flow adjustment of about $101-$191 per month for a two-bedroom unit.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.