Location: Mercer County, PA | Metro: Lawrence County, PA HUD Metro FMR Area
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 | $860 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $206,329 | 0.6% | D |
| 3BR | $1,710 | $279,555 | 0.61% | D |
| 4BR | $1,910 | $329,463 | 0.58% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $920 for ZIP code 16156 (Volant, PA) can adequately cover the mortgage on a home priced at $248,269. To address this, we must consider the typical mortgage payments in the area. Assuming a 30-year fixed-rate mortgage at an average rate of around 5%, the monthly payment on a $248,269 home would be approximately $1,330, including principal, interest, taxes, and insurance. This amount exceeds the FMR, indicating that relying solely on FMR might not fully cover the mortgage. However, it's important to note that FMR is a guideline for housing assistance programs and does not reflect the entire rental market.
The second objection could be the low percentage of renters in Volant, PA, which stands at 17.7%. While this figure suggests a smaller pool of potential tenants compared to areas with higher percentages, it does not necessarily mean insufficient demand. The actual number of renters can still support a modest portfolio. Additionally, the percentage of renters does not account for the quality of management and the attractiveness of the properties. Well-maintained homes in good condition can attract tenants even in areas with lower renter percentages.
A final concern might be the ability of Housing Choice Vouchers to keep up with market rents, which are currently at $1,132. The voucher amount typically lags behind market rates, but the gap between the FMR and market rents in Volant, PA, is relatively narrow. For instance, if the voucher covers $920, the landlord could potentially charge a slight additional amount to bridge the gap. It's also worth noting that voucher holders often have stable income sources, providing a reliable tenant base.
In summary, while the FMR of $920 may not fully cover the mortgage on a $248,269 home, the market rents at $1,132 provide a better indication of what can be charged. The 17.7% renter population suggests a smaller but manageable market, and vouchers can help mitigate some of the financial risks associated with renting. These points should be considered alongside other local economic factors and property management strategies to ensure a successful investment in Volant, PA.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.