Location: Johnstown, PA | Metro: Johnstown, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,250 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 15962 are straightforward. The SAFMR (Standard Amount for Moderate Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is $930. This figure is specific to ZIP 15962, meaning it is set for this particular area and reflects the housing authority's determination of what constitutes a reasonable rent for moderate-quality housing.
In contrast, the local market rent for a two-bedroom unit, according to the Census ACS (American Community Survey), is $725. This difference highlights the potential financial benefit for landlords who accept Section 8 vouchers in this ZIP code.
When a tenant uses a Section 8 voucher, they typically pay 30% of their adjusted income toward rent, plus any applicable utility allowances. The housing authority then pays the remaining balance up to the SAFMR. For example, if a tenant's portion is $279 (30% of an assumed income of $930), and there is a utility allowance of $100, the total payment to the landlord would be $379. The housing authority would cover the rest, which in this case would be $551 ($930 - $379).
This reimbursement model ensures landlords receive a steady, government-backed income stream. However, it also means landlords must adhere to housing quality standards and undergo regular inspections to maintain eligibility.
Given the SAFMR of $930 and the local market rent of $725, landlords in ZIP 15962 can expect a reimbursement surplus when renting a two-bedroom apartment to a Section 8 tenant. The surplus would be $205 per month ($930 - $725), assuming the property is priced at the local market rate. If the property is priced higher than the local market rate but still below the SAFMR, the surplus will be smaller. Conversely, if the property is priced above the SAFMR, the landlord will not receive additional compensation beyond the SAFMR amount, resulting in a gap between the actual rent charged and the reimbursement received.
To summarize, landlords in ZIP 15962 should price their two-bedroom apartments competitively yet reasonably, aiming for a rent close to the local market rate of $725 to maximize the reimbursement surplus. Pricing above the SAFMR of $930 will not yield extra income from the housing authority, thus reducing profitability.
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.