Location: Jefferson County, PA | Metro: Clearfield County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP code 15824 might raise several valid concerns regarding the feasibility of investing in properties there, especially under the Section 8 program. Here's a direct look at those concerns, using available data.
The first objection is whether the Fair Market Rent (FMR) of $1,010 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a home valued at $138,347. To address this, we must consider the typical mortgage terms and interest rates. Assuming a standard 30-year fixed-rate mortgage at an average rate, the monthly payment on a $138,347 home would likely be around $550-$650, depending on the down payment and the exact interest rate. The FMR of $1,010 comfortably exceeds this amount, indicating that rental income under the Section 8 program can indeed cover the mortgage payments.
The second concern is the level of renter demand, which stands at 22.4%. This figure suggests that a significant portion of the housing stock is rented out, but it does not provide a complete picture of the dynamics between supply and demand. To fully assess whether this demand is sufficient, we would need additional data on vacancy rates and the number of units available compared to the number of renters. However, the 22.4% figure implies a steady rental market, although it is not high enough to guarantee a saturated demand without further investigation into local economic factors and population trends.
The final objection pertains to the ability of Section 8 vouchers to keep pace with market rents, which currently stand at $733. While the FMR of $1,010 is higher than the current market rent, the actual voucher payment may not always reach this level. The effectiveness of vouchers in covering the cost of renting a property at $1,010 depends on the specifics of the local Section 8 program, including how frequently voucher amounts are adjusted to match market conditions. Given the gap between the FMR and current market rents, it is reasonable to expect that vouchers could potentially cover the costs, but this requires confirmation from the local housing authority's policies and recent adjustments to voucher amounts.
In summary, while the data indicates that the FMR should adequately cover mortgage payments on homes valued at $138,347, the level of renter demand and the ability of vouchers to keep up with market rents remain areas that require deeper analysis to fully satisfy an investor's concerns. The 22.4% renter occupancy rate and the discrepancy between the current market rent of $733 and the FMR of $1,010 are key points to investigate further.
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.