Location: Somerset County, PA | Metro: Johnstown, PA MSA
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 | $900 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $97,670 | 1.14% | B |
| 3BR | $1,540 | $141,985 | 1.08% | B |
| 4BR | $1,580 | $193,722 | 0.82% | C |
U.S. Census Bureau data (2024)
The classification of ZIP code 15905, located in Johnstown, Pennsylvania, hinges on the interplay between yield potential and market stability. With a Fair Market Rent (FMR) of $920 for fiscal year 2024, compared to the local market rent of $845, there is a clear premium for Section 8 properties in this area. This indicates a higher yield potential for landlords willing to participate in the Section 8 program. Additionally, the average home value in the area stands at $114,991, which can be leveraged to maximize rental income through the program.
However, the stability of the market presents a different picture. Only 21.4% of residents are renters, which is a relatively low percentage. This suggests that there might not be a robust demand for rental properties, potentially leading to periods of vacancy. Furthermore, the median household income in the area is $69,212, which is below the national average. This lower income level could affect the ability of tenants to consistently pay rent, impacting the stability of cash flow.
The lack of data on the average days on market (DOM) for rentals further complicates the assessment of market stability. Without this figure, it's difficult to gauge how quickly properties can be leased, which is crucial for maintaining steady cash flow.
Given these factors, ZIP 15905 leans towards being a moderate-yield/moderate-stability market. While the FMR provides an opportunity for higher yields, the relatively low percentage of renters and modest median income suggest that cash flow might not be as stable as in areas with higher rental demand and income levels. Landlords and small-portfolio investors should carefully consider the balance between potential returns and the risk of vacancies or delayed payments when deciding to invest in this ZIP code.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.