Location: Johnstown, PA | Metro: Altoona, PA MSA
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 | $790 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $126,948 | 0.89% | C |
| 3BR | $1,450 | $149,987 | 0.97% | C |
| 4BR | $1,680 | $167,619 | 1% | B |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 16601 (Altoona, PA) for Section 8 investments, follow this decision tree based on the provided data.
1) Does the Fair Market Rent ($950) for FY 2024 cover the debt service on a property valued at $138,370?
If the annual debt service (including mortgage, taxes, insurance, and maintenance) is less than $11,400 ($950 x 12 months), then the answer is Yes. The FMR of $950 can comfortably cover your expenses.
If the annual debt service exceeds $11,400, then the answer is No. The FMR does not sufficiently cover your costs, making the investment unprofitable under Section 8 guidelines.
2) Is the market rent ($900 ZORI) above, at, or below the FMR?
If the ZORI is $900, which is below the FMR of $950, then the answer is Yes. This indicates that Section 8 tenants can pay a higher rent than what the market offers, providing a margin of safety against vacancy.
If the ZORI were equal to or above the FMR, the answer would be It Depends. Equal ZORI and FMR mean no margin of safety; above FMR suggests market rents are higher, potentially reducing interest in Section 8 properties.
3) Are 30.6% renters plus a 28-day Days on Market (DOM) indicative of sufficient demand?
If the percentage of renters is 30.6%, and the average DOM is 28 days, then the answer is Yes. This combination suggests a moderate level of rental demand and relatively quick turnover, indicating that there are enough Section 8 eligible tenants to fill vacancies promptly.
If the DOM were significantly longer, say over 60 days, then the answer would be No. Longer DOM periods indicate difficulty in filling vacancies, which could lead to prolonged periods without income.
Summary:
The decision to invest in ZIP 16601 for Section 8 properties hinges on three key factors:
Based on these criteria, ZIP 16601 presents a viable opportunity for Section 8 investments, assuming your debt service is covered by the FMR and you can manage the property effectively.
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.