Location: Clearfield County, PA | Metro: Johnstown, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 16627 for Section 8 properties must follow a structured decision-making process. The first question to address is whether the Fair Market Rent (FMR) of $850 for the fiscal year 2024 can cover the debt service on a property valued at $93,720. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. To determine if this FMR clears these expenses, you need to calculate the total annual debt service. Assuming a moderate debt service rate, an FMR of $850 per month would provide $10,200 annually. This figure must be compared against the actual annual debt service costs of the property.
If the FMR of $850 does cover the debt service, proceed to the second question: how does the market rent of $817 (based on Census ACS data) compare to the FMR? If the market rent is below the FMR, then the answer is a clear yes; the landlord would be able to charge the higher FMR rate and still attract tenants. If the market rent is equal to the FMR, the answer is it depends; the landlord might face competition from non-Section 8 rentals, but could still find success depending on the local demand for affordable housing. If the market rent is above the FMR, then the answer is a no; the landlord would not be able to justify charging the lower FMR rate when the market demands more.
The third consideration involves assessing the demand for rental properties. In ZIP 16627, 15.5% of residents are renters, and the average days on the market (DOM) for rental listings is listed as N/A. This lack of data makes it challenging to definitively gauge demand. However, with 15.5% of the population renting, there is a clear base level of demand. If the landlord can secure a steady stream of Section 8 tenants, this percentage suggests sufficient interest. The unknown DOM factor introduces uncertainty, but generally, if the market rent is competitive and the property is well-maintained, it should attract tenants within a reasonable timeframe.
In summary, if the FMR of $850 covers the debt service and the market rent is below this figure, the landlord should consider purchasing in ZIP 16627. If the market rent is equal to the FMR, the decision hinges on other factors such as the quality of the property and local competition. If the market rent exceeds the FMR, it's advisable to look elsewhere for investment opportunities. With 15.5% of the population renting, there is a solid foundation of demand, though the exact time to lease cannot be determined without DOM data.
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.