Location: Johnstown, PA | Metro: Johnstown, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
In ZIP code 15942, there are several potential pitfalls for landlords considering Section 8 investments. First, tenant turnover is a significant concern. The market rent stands at $1,120, while the Fair Market Rent (FMR) for FY 2024 is set at $900. This discrepancy can lead to higher tenant churn as participants may seek units that align more closely with the FMR. Second, vacancy exposure poses another challenge. With no data available on days on market (DOM), it's difficult to predict how quickly a unit might fill, especially if it's priced below the market rate. Lastly, deferred maintenance is a critical issue given the typical home value of $136,036 and a median income of $84,875. Landlords must be prepared to invest in necessary repairs and improvements without immediate financial return, as the income levels suggest limited ability for tenants to contribute to such costs.
However, these risks are tempered by the high concentration of renters in the area. A 10.0% renter share indicates a robust demand for rental properties, which often translates into strong interest in Section 8 vouchers. High renter density can ensure a steady stream of applications, reducing the likelihood of prolonged vacancies. Moreover, the presence of a substantial number of voucher holders can provide a stable source of income, as long as the property meets the required standards and the landlord is willing to navigate the administrative processes involved.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.