Location: Jefferson County, PA | Metro: Armstrong County, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 16240 for Section 8 purposes, follow this decision tree based on the data provided:
1) Does the Fair Market Rent (FMR) of $850 cover the debt service on a property valued at $174,455?
Yes. The FMR of $850 exceeds the average debt service for properties in this price range. This makes the area financially viable for Section 8 tenants.
No. If the debt service is higher than $850, then relying solely on Section 8 income would not be sufficient to cover your mortgage payments and other expenses.
It Depends. If the debt service is close to $850, you will need to consider additional factors such as maintenance costs, vacancy rates, and potential for rental increases.
2) Is the market rent of $691 above, at, or below the FMR?
Above. If the market rent were above $850, it would indicate that the property could potentially generate more income than what is covered by the FMR. However, since the market rent is actually below the FMR, this does not apply.
At. If the market rent equaled the FMR, it would mean that Section 8 covers the entire cost of renting. This is not the case for ZIP 16240, where the market rent is lower than the FMR.
Below. The market rent of $691 is below the FMR of $850, which means that landlords can potentially receive higher rents from Section 8 tenants compared to the general market. This is beneficial for landlords seeking to maximize their rental income while participating in the Section 8 program.
3) Are 19.6% renters plus the unknown days on market (DOM) enough demand?
Yes. With 19.6% of residents being renters, there is a significant portion of the population who may be interested in renting. The fact that the days on market (DOM) is listed as 'N/A' suggests either a lack of recent data or that the market is stable enough that units do not typically stay vacant for long periods.
No. If the percentage of renters was much lower, or if the DOM was high, indicating difficulty in leasing units, then demand might not be strong enough to justify investing in this area for Section 8.
It Depends. While the 19.6% figure is positive, the lack of DOM data means you must rely on other indicators of demand, such as local job growth, population trends, and competition among landlords.
In conclusion, if the FMR of $850 can indeed cover the debt service on a property valued at $174,455, and considering the market rent is below this amount, ZIP 16240 presents a favorable opportunity for Section 8 investment. The 19.6% of renters indicates a reasonable level of demand, but you must further investigate the local market conditions to make a final decision.
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.