Location: Armstrong County, PA | Metro: Armstrong County, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The analysis for ZIP 16245 reveals a significant gap between the Fair Market Rent (FMR) and the market rent. Specifically, the FMR for 2-bedroom units in ZIP 16245 is set at $850 for fiscal year 2024, whereas the market rent, according to the latest Census ACS data, stands at $597. This discrepancy represents a gap of $253, or approximately 42.3%, between the two figures.
This gap highlights the financial advantage of accepting Section 8 tenants in ZIP 16245. Despite the lower market rent, landlords can receive a higher payment through the voucher program, making it a lucrative yield play. The FMR of $850 ensures that voucher holders can afford to live in units priced above the market rate, thus providing a stable income stream for landlords.
However, the benefit comes with a cost. Accepting Section 8 tenants means landlords must adhere to government regulations and inspections, which can be time-consuming. Additionally, the voucher system often limits rent increases, potentially affecting long-term profitability.
In the broader context of ZIP 16245, only 14.9% of residents are renters, indicating a relatively low demand for rental properties. With a median income of $48,438, many households may struggle to afford even the market rent of $597. Therefore, the Section 8 program plays a crucial role in ensuring affordable housing options.
Allegheny County, where ZIP 16245 is located, uses Small Area Fair Market Rents (SAFMRs). This means that the local Public Housing Authority can adjust the payment standards to fall within 90-110% of the FMR, further customizing the subsidy to local market conditions.
To summarize, the FMR of $850 for ZIP 16245 is 42.3% higher than the market rent of $597. Landlords can leverage this gap to secure a steady income, but they must balance this against the regulatory requirements and limitations inherent in 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.