Location: Johnstown, PA | Metro: Johnstown, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The median home value in ZIP 15940 is $236,400, which is below the national average. This makes it a suitable area for investment, especially when considering the Fair Market Rent (FMR) for the fiscal year 2024, which is set at $1160. The market rent in this area is estimated at $728, creating a significant spread that can benefit landlords. However, the primary focus should be on the diversification aspect of this ZIP code.
ZIP 15940 has a 14.6% renter share, indicating a substantial portion of the population relies on rental properties. Additionally, the median income in the area is $88,274, which is relatively high and suggests a stable economic environment. These factors combined make ZIP 15940 an ideal location for diversifying a real estate portfolio.
Investing in ZIP 15940 can provide a buffer against market volatility in other areas. The higher median income supports the potential for steady rental payments, reducing the risk of default. Furthermore, the significant difference between the FMR and market rent means that properties in this ZIP code can be rented out at a price that exceeds the government-subsidized rate, providing additional cash flow benefits.
While appreciation plays and cash-flow anchors are important components of any real estate investment strategy, ZIP 15940 stands out as a diversifier due to its stable economic conditions and reasonable property values. This ZIP code offers a balanced approach to real estate investing, ensuring that landlords and small-portfolio investors can maintain a healthy and varied portfolio.
Summary: ZIP 15940 is best suited as a diversifier within a Section 8 portfolio strategy. With a median income of $88,274 and a 14.6% renter share, it provides stability and reduces risk. The spread between the FMR ($1160) and market rent ($728) also ensures strong cash flow.
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.