Location: Johnstown, PA | Metro: Johnstown, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $930 for ZIP 15925 will sufficiently cover the mortgage on a new home. However, the average home price in ZIP 15925 is notably low, with a median home value of $80,000. This suggests that mortgages on homes in this area could be relatively affordable, making it plausible that the FMR can indeed cover the mortgage payments.
The investor may also doubt if there's sufficient rental demand at 20.5%. Trulia reports that the median rent for a two-bedroom apartment in ZIP 15925 is $1,030, which is below the national average of $1,430. While the rental demand figure of 20.5% is lower than some might prefer, it aligns with the lower-than-average rental costs, indicating that the demand is stable and likely meets the supply. Moreover, the fact that the median rent is significantly lower than the national average suggests that the market is well-suited for those seeking affordable housing, which can translate into consistent tenant interest.
Another concern might be whether HUD vouchers will keep pace with market rents of $1,600. Unfortunately, the data does not provide specific information regarding the trend of voucher amounts in ZIP 15925. However, given the relatively low median home value and rental costs, it is reasonable to assume that the voucher amounts are likely to be more aligned with the local market conditions than with the higher end of the market rents. In other words, while market rents can reach up to $1,600, the typical voucher amount is expected to be closer to the median rent of $1,030, making it feasible for tenants to afford homes within their budget.
To summarize, the FMR of $930 should adequately cover mortgage payments on homes in ZIP 15925 due to the low median home value. The rental demand, though not exceptionally high, matches the local market conditions and is likely sufficient. Lastly, while specific trends in voucher usage are not detailed, the overall affordability of the area suggests that vouchers will remain a viable option for tenants.
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.