Location: Warren County, PA | Metro: Warren County, PA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $175,234 | 0.58% | F |
| 3BR | $1,360 | $221,590 | 0.61% | D |
| 4BR | $1,460 | $265,772 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Russell, PA (ZIP 16345), might have several concerns regarding the viability of investing in properties that participate in the Section 8 program. Let's address these concerns directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $970 (metro FY 2026) cover the mortgage on a $206,442 home?
The FMR of $970 for the fiscal year 2026 in Russell, PA, needs to be compared against the average monthly mortgage payment for a home priced at $206,442. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly mortgage payment would be approximately $1,000. Thus, the FMR alone does not cover the mortgage payment, leaving a shortfall of around $30 per month. This highlights the importance of additional income sources or cost savings strategies to ensure profitability.
Objection 2: Is there enough renter demand at 8.2%?
The rental vacancy rate of 8.2% suggests that there is moderate demand for rentals in Russell, PA. An 8.2% vacancy rate means that out of every 100 rental units, roughly 8.2 are unoccupied. While this is higher than the national average, it does not necessarily indicate low demand. It could mean that the supply of rental units exceeds demand slightly, which is important to consider when deciding whether to invest in new construction or rehabilitation projects. However, the data does not provide a comprehensive picture of the number of Section 8 participants in the area, so further research into the local tenant pool would be advisable.
Objection 3: Will vouchers keep pace with $689 market rents?
The voucher amount set at $970 for FY 2026 is above the current market rent of $689, indicating that vouchers should comfortably cover the typical rental costs in Russell, PA. However, the key question is whether this gap will persist over time. With the market rent being lower than the FMR, landlords can currently benefit from a positive differential. Yet, the data does not offer projections on future market rent increases or adjustments to the voucher amounts. To maintain profitability, landlords must monitor both market rent trends and changes in voucher policies closely.
In summary, while the data presents some challenges, such as the FMR not fully covering mortgage payments and a moderate rental vacancy rate, it also shows that vouchers currently exceed market rents. These points should be considered carefully by any investor looking to enter the Russell, PA, market with a Section 8 property.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.