Location: Somerset County, PA | Metro: Somerset 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 | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $82,974 | 1.22% | A |
| 3BR | $1,350 | $130,068 | 1.04% | B |
| 4BR | $1,570 | $150,197 | 1.05% | B |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 15936, Hooversville, PA, provides a detailed look at potential investment yields based on Fair Market Rent (FMR) and market rent data.
For the 2-bedroom unit, the annualized FMR stands at $970 per month for FY 2026, while the Census ACS reports a market rent of $583 per month. Using these figures against the median home value of $107,938, we can calculate the implied gross-yield for both scenarios.
In the case of using the FMR, the annual rent would be $11,640 ($970 x 12 months). This results in an implied gross-yield of approximately 10.8%. Conversely, when using the market rent figure, the annual rent drops to $7,000 ($583 x 12 months), leading to an implied gross-yield of roughly 6.5%.
Given the 12.2% renter density in Hooversville, it's important to consider the realistic scenario. The FMR-based yield appears optimistic due to the relatively low renter population, suggesting that the market rent scenario is more reflective of actual rental demand. However, the N/A-day DOM (Days on Market) indicates a lack of recent data, which could imply either a stable rental market or insufficient data points to draw conclusions.
Thus, while the FMR scenario offers a higher gross-yield, the market rent scenario, with its lower but potentially more accurate figure, suggests a more conservative approach to investment. Landlords and small-portfolio investors should lean towards the market rent of $583 per month for a 2BR unit, implying a gross-yield of 6.5%, when making investment decisions in Hooversville, PA.
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.