Location: Somerset County, PA | Metro: Johnstown, PA MSA
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 | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $86,573 | 1.17% | B |
| 3BR | $1,370 | $134,878 | 1.02% | B |
| 4BR | $1,540 | $150,752 | 1.02% | B |
| 5BR | $1,786 | $130,393 | 1.37% | A |
U.S. Census Bureau data (2024)
In ZIP 15963, which encompasses Windber, PA, in Cambria County, the economics of Section 8 housing are straightforward when compared to the local rental market. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $850. This figure is crucial because it defines the maximum amount that the Housing Choice Voucher program will pay towards rent for a unit of this size in this exact area.
The local market rent, as reported by the Census American Community Survey (ACS), is slightly lower at $752 for a similar two-bedroom unit. This difference between the SAFMR and the market rent can be advantageous for landlords participating in the Section 8 program. When a tenant uses a voucher, they are responsible for paying a portion of the rent themselves, typically around 30% of their income, plus any utility allowances.
To illustrate, let's assume a tenant's portion is $255, which is 30% of an average income level in the area. The utility allowance for a two-bedroom unit might be around $200. Therefore, the total reimbursement a landlord would receive per month is calculated as follows:
This means the landlord receives the full SAFMR of $850, covering the tenant's payment and the utility allowance. Since the local market rent is $752, the SAFMR of $850 represents a surplus for landlords who participate in the Section 8 program in this ZIP code. Specifically, the surplus is $98 per month for a two-bedroom unit, making it financially beneficial to accept vouchers despite the administrative requirements.
In summary, for a two-bedroom apartment in ZIP 15963, landlords can expect a reimbursement of $850, which exceeds the local market rent of $752 by $98. This surplus provides a clear economic incentive for landlords to consider accepting Section 8 tenants, ensuring steady income and occupancy even if the market rates are lower.
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.