Section 8 Fair Market Rent (FMR) for ZIP 15920 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 15920

• HOUSING AUTHORITY OF INDIANA COUNTY (Indiana, PA) - 590 Section 8 vouchers

A landlord considering investing in ZIP code 15920 for Section 8 properties should follow this decision tree:

Step 1: Determine if the Fair Market Rent (FMR) of $990 for the metro area in fiscal year 2026 can cover the debt service on a property valued at $160,015. This calculation is crucial because it directly impacts the financial viability of the investment.

If the answer is yes, proceed to Step 2. If the FMR cannot cover the debt service, then the investment is not advisable due to the risk of financial loss.

Step 2: Compare the market rent of $1,000 per month (as reported by the Census ACS) against the FMR. This comparison helps gauge whether the rental income will be sufficient beyond just covering the debt service.

• If the market rent is above the FMR, the property has potential to generate additional income beyond what is required by Section 8, which could be beneficial for the landlord.
• If the market rent is equal to the FMR, the landlord will receive exactly the amount needed to cover the debt service, but there will be no additional income generated.
• If the market rent is below the FMR, the landlord might struggle to find tenants willing to pay the higher FMR rate, leading to potential vacancies and reduced income.

Step 3: Evaluate the demand for rentals in the area. With 9.0% of the population being renters and an unknown number of days on the market (DOM), assess if there is enough demand to support a Section 8 property.

• If the 9.0% rental rate combined with the unknown DOM suggests a steady demand for rentals, the investment could be viable. However, without specific DOM data, it's challenging to make a definitive judgment.
• The lack of DOM data means that the speed at which properties are rented cannot be accurately assessed, which is a key factor in determining the liquidity of the investment.

Decision Outcome:

• Yes: Invest if the FMR clears debt service and market rent is above FMR, indicating potential for supplemental income and sufficient demand.
• No: Do not invest if the FMR does not clear debt service or if the market rent is below the FMR, as this would likely result in financial losses.
• It Depends: The decision is unclear when the FMR clears debt service and market rent equals the FMR, especially given the lack of DOM data. In this scenario, further investigation into local rental trends and vacancy rates is necessary to make an informed decision.

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.