Location: Johnstown, PA | Metro: Altoona, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The ZIP code 16641 is situated within a modest-sized neighborhood characterized by a relatively small population of 2,348 residents. The area is predominantly owner-occupied, with only 16.3% of the residents being renters. This indicates a community where homeownership is a significant aspect of the local culture. The median household income in this ZIP code stands at $65,417, suggesting a middle-class environment. However, the median home value is notably lower at $94,953, which could imply that the housing stock consists of older homes or properties that have not appreciated significantly over time.
When it comes to rental economics, the disparity between the Fair Market Rent (FMR) and the actual market rent is striking. For fiscal year 2024, the FMR for ZIP 16641 is set at $920. In contrast, the Census ACS reports the average market rent at $679. This gap highlights an opportunity for landlords who can leverage the higher FMR to attract tenants eligible for Section 8 vouchers, thereby securing a steady stream of government-subsidized rental income.
The question then arises whether this ZIP code is suitable for a hands-off voucher operator or requires a more hands-on approach from a value-add buyer. Given the low median home value and the modest income levels, a hands-on strategy might be more beneficial. Landlords who are willing to invest in property improvements can potentially increase their rental income closer to the FMR while also enhancing the overall quality of life for their tenants. This approach would likely yield better returns and create a more desirable living environment, attracting both voucher holders and other renters looking for affordable yet improved housing options.
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.