Location: Jefferson County, PA | Metro: Clarion County, PA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 15829 provides insight into potential rental income scenarios for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2026 is set at $980 per month. When annualized, this translates to an annual rent of $11,760. The market rent, based on Census ACS data, stands at $843 per month, equating to an annual rent of $10,116.
To derive the implied gross yield, we would typically compare these figures against the median home value. However, the median home value for ZIP 15829 is currently not available (N/A). This absence makes it challenging to calculate a precise cap rate. Nonetheless, we can still provide a comparative analysis based on the available rental data.
In the scenario where a landlord relies solely on Section 8 vouchers, the annualized FMR of $11,760 represents the maximum allowable rent that can be charged for a two-bedroom unit. If we hypothetically assume a median home value for this ZIP code, the gross yield from Section 8 rents would be lower than what could potentially be achieved through market rents.
The market rent figure of $843 per month suggests a lower gross yield compared to the FMR. Given the 17.9% renter density in ZIP 15829, it indicates a relatively low proportion of renters in the area, which might limit the number of potential Section 8 tenants. Additionally, the lack of data regarding the days on market (DOM) for properties in this ZIP code means we cannot accurately gauge how quickly units might be filled under either scenario.
Despite the limitations posed by missing data points, it is evident that the gross yield from market rents is higher than that from Section 8 rents. For landlords and investors, this implies that while Section 8 can provide a stable source of income, it may not be as lucrative as capturing the full market rent. The choice between the two depends largely on the investor's risk tolerance and the local demand for subsidized housing.
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.