Location: Armstrong County, PA | Metro: Armstrong County, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 16212 for Section 8 purposes, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $850 cover the debt service on a property valued at $98,147?
Yes. The FMR of $850 is sufficient to cover the debt service on a property valued at $98,147. Assuming a typical mortgage rate of around 4%, the annual debt service would be approximately $4,900, which translates to a monthly cost of about $408. This amount is well below the FMR, indicating that the landlord can expect to cover their mortgage payments and potentially other expenses such as maintenance and insurance with the Section 8 voucher.
No. If the landlord's debt service exceeds $850 per month, then the answer is no. They will not be able to cover their mortgage payments with the FMR alone, making the investment less viable under Section 8 guidelines.
It Depends. If the landlord has additional sources of income or expects to receive assistance beyond the FMR, they may still find the investment feasible. However, this scenario is less common and requires careful financial planning.
Step 2: How does the market rent of $683 compare to the FMR?
Above. If the market rent were higher than the FMR, it would indicate that landlords could potentially earn more by renting to non-Section 8 tenants. Since the market rent is below the FMR, landlords who choose to participate in Section 8 can expect to receive a higher rental income than the average market rate.
At or Below. The market rent of $683 is below the FMR of $850. This means that landlords participating in the Section 8 program can expect to receive a higher rental income compared to the general market, making it a more attractive option.
Step 3: Is there enough demand from renters in ZIP 16212?
Yes. With 6.5% of the population being renters and the number of days on the market (DOM) being listed as N/A, it suggests a steady demand for rental properties. The lack of specific DOM data might indicate that listings move quickly once they become available, further supporting the idea that there is sufficient demand.
No. If the percentage of renters were significantly lower or if the DOM was high, it would suggest a weak rental market. In this case, the landlord would face challenges in finding tenants willing to take advantage of the Section 8 program.
It Depends. Given the limited information on DOM, it is difficult to make a definitive statement. However, the 6.5% figure indicates a moderate level of demand. Landlords should consider conducting further local market research to understand the rental dynamics better.
In conclusion, based on the provided data, ZIP 16212 appears to be a viable location for landlords looking to invest in Section 8 properties. The FMR adequately covers debt service, surpasses market rent, and there is a reasonable demand for rentals. However, the landlord must ensure that their property meets the required standards and that they are prepared to comply with the regulations associated with the Section 8 program.
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.