Location: Lawrence County, PA | Metro: Lawrence County, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
To determine if you should invest in ZIP code 16172 for Section 8 properties, follow this decision tree based on the specific criteria provided:
1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a property?
If the FMR does not cover the debt service, then the answer is No. Investing in a property where the rental income cannot meet the financial obligations such as mortgage payments, taxes, insurance, and maintenance costs would be unwise.
2) Is the market rent above, at, or below the FMR?
If the market rent is above the FMR, it suggests that there is a higher demand for housing in the area compared to what Section 8 can offer. This means that landlords might prefer renting to non-Section 8 tenants who can pay more. If the market rent is at or below the FMR, it indicates that Section 8 rents are competitive or higher than the average market rate, making Section 8 properties a viable investment option.
3) Are the percentage of renters and days on market (DOM) sufficient to ensure demand for Section 8 units?
The percentage of renters and DOM are critical indicators of demand. If the percentage of renters is high and the DOM is low, it signifies strong demand for rental properties in the area, including those that accept Section 8 tenants. Conversely, if the percentage of renters is low and the DOM is high, it implies weaker demand, which could make it harder to find tenants willing to use Section 8 vouchers.
Based on the data provided, the percentage of renters and DOM figures are not available. Without these specifics, it is difficult to assess the demand accurately. However, if you were to consider the first two points alone, the decision would hinge on whether the FMR of $970 can cover the debt service and how it compares to the market rent. If the FMR covers the debt service and is competitive with market rates, then the investment in ZIP 16172 could be considered Yes. Otherwise, it would be No.
If you need a definitive answer, you must gather the missing data on the percentage of renters and DOM. Once you have these figures, you can reassess the viability of investing in Section 8 properties in ZIP 16172.
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.