Location: Jefferson County, PA | Metro: Clearfield County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,030 for ZIP 15801 can sufficiently cover the mortgage on a home priced at $171,295. This concern is valid; however, it's important to consider that the FMR represents the median rent for a two-bedroom apartment in the area, not the mortgage payment. To accurately assess if the FMR can cover the mortgage, one would need to calculate the monthly mortgage payment based on current interest rates and loan terms. Without this calculation, it's impossible to definitively state whether the FMR will cover the mortgage, but historically, rental income has been a key component in making mortgage payments feasible.
The percentage of renters in ZIP 15801 stands at 28.1%. An investor might doubt if this rate indicates sufficient demand. While 28.1% is not a high percentage, it does suggest a notable portion of the population relies on renting. Additionally, the demand for rental properties is not solely determined by the percentage of renters but also by the overall population growth and job opportunities in the area. The data does not provide specifics on these factors, so while 28.1% suggests some demand, a comprehensive analysis would require further investigation into population trends and employment conditions.
Another objection could be whether the Housing Choice Voucher Program, which pays an average of $891 per month, can keep pace with market rents. Market rents in ZIP 15801 are higher than the voucher amount, indicating that voucher holders might struggle to find suitable housing. However, landlords can still benefit from the stability and reliability of voucher payments. It's worth noting that the voucher program aims to adjust its payments annually based on the cost of living and market conditions. Therefore, while current voucher amounts may not fully match market rents, there is a mechanism in place to potentially increase payments over time.
To summarize, while the data presents some challenges, such as the gap between FMR and mortgage payments and the lower percentage of renters, it also highlights opportunities. Investors should conduct a thorough analysis of local market dynamics and consider the long-term potential for rental property investments in ZIP 15801.
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.