Location: Jefferson County, PA | Metro: Elk 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 | $750 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $108,935 | 0.94% | C |
| 3BR | $1,330 | $121,967 | 1.09% | B |
| 4BR | $1,340 | $127,652 | 1.05% | B |
U.S. Census Bureau data (2024)
A skeptical investor considering Ridgway, PA (ZIP 15853) might question whether the Federal Market Rent (FMR) of $970 for the fiscal year 2026 will sufficiently cover the mortgage on a home valued at $109,102. To address this concern, it's important to note that the FMR represents the average rent for a two-bedroom apartment in the area, not the purchase price of a home. A typical mortgage payment on a $109,102 home would be influenced by factors such as interest rates, loan terms, and down payment size. However, based on historical trends and current interest rates, a mortgage payment on a home of this value could range from $400 to $700 per month, which is well below the $970 FMR. This indicates that FMR can indeed cover the mortgage, providing a comfortable margin for property taxes, insurance, and maintenance.
The second objection relates to the level of renter demand, which stands at 21.3%. An investor might wonder if this percentage is sufficient to ensure steady occupancy. While 21.3% is relatively low compared to national averages, it does suggest that there is a segment of the population seeking rental properties. The key here is understanding the local market dynamics. A lower percentage of renters does not necessarily mean poor demand; it could reflect a preference for homeownership. Additionally, the data does not provide insights into the vacancy rate or the number of available rental units in the area, which are critical metrics for gauging demand. It's advisable to conduct further research into these specifics before making a decision.
Lastly, an investor may question whether voucher payments will keep pace with market rents, currently estimated at $708. The gap between the FMR and the market rent suggests that voucher holders might struggle to afford market-rate rentals without additional income. According to the latest HUD guidelines, the voucher amount is adjusted annually based on changes in the FMR. For ZIP 15853, this means that while the $708 market rent is higher than the $970 FMR, the voucher should still cover a significant portion of the cost, potentially supplemented by a tenant's contribution. However, the data does not specify the exact amount of the voucher, which is crucial for determining its adequacy in covering market rents. Investors should consult local housing authorities for precise voucher amounts.
In summary, while the data provides some assurance regarding the ability of FMR to cover mortgage payments and the presence of a rental market, it falls short in offering detailed insights into the local vacancy rate and exact voucher amounts. These gaps should be filled through targeted local research to make an informed investment decision.
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.