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 16259 (Templeton, PA) for Section 8 investment, follow this decision tree based on the provided data:
1) Does FMR $850 (zip FY 2024) clear debt service on a $130,377 property?
Yes. The Fair Market Rent (FMR) of $850 is sufficient to cover the debt service on a property valued at $130,377. Assuming a typical mortgage rate of around 5%, the annual debt service would be approximately $6,519, or $543 per month. With an FMR of $850, there is a monthly surplus of $307, which can be used to cover maintenance, taxes, and other expenses. This makes the property financially viable under Section 8.
No. If the debt service exceeds the FMR, then the property is not financially sound for a Section 8 investment. However, given the numbers, this scenario does not apply to Templeton, PA.
It depends. If there are significant additional costs that reduce the surplus between FMR and debt service, then further analysis is needed. But with a clear surplus, the initial answer is yes.
2) Is market rent $664 (Census ACS) above, at, or below FMR?
Above. If the market rent were higher than the FMR, it would indicate that Section 8 properties might struggle to compete with the market, reducing their attractiveness. This is not the case here; the market rent is below the FMR, making Section 8 properties competitive.
At or Below. Since the market rent is $664, which is below the FMR of $850, Section 8 properties are priced competitively. Landlords can expect a steady stream of tenants willing to pay the FMR without facing market pressures that could lead to vacancies.
3) Are 15.0% renters + N/A-day DOM enough demand?
Yes. The 15.0% of households renting indicates a moderate demand for rental properties. While the Days on Market (DOM) is not specified, the presence of a rental market suggests that there is enough interest to support Section 8 properties. Additionally, the lower market rent compared to FMR ensures that Section 8 units will be attractive to potential tenants.
No. If the percentage of renters was significantly lower or the DOM indicated long vacancy periods, it would suggest a weak rental market. However, with 15.0% of households renting, the demand is stable enough to warrant investment.
It depends. The lack of specific DOM data introduces some uncertainty. However, given the moderate rental percentage and the competitive pricing of Section 8 units, the overall demand appears sufficient to support investment.
In conclusion, based on the provided data, a landlord should consider purchasing in ZIP 16259 for Section 8 investment. The FMR comfortably covers debt service, the market rent is below FMR, and the rental percentage is moderate, indicating a stable demand for rental properties.
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.