Location: Altoona, PA | Metro: Altoona, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $960 for ZIP 16665 in fiscal year 2024 will sufficiently cover the mortgage on a typical home. According to recent data, the median home value in ZIP 16665 is $165,300. This figure, however, comes with a significant margin of error, indicating that it could be much lower or higher. To determine if the FMR will cover the mortgage, one must consider the specific mortgage terms and interest rates. With an average home value and typical mortgage rates, the FMR of $960 could indeed cover a mortgage payment, but this would depend on the exact purchase price and financing conditions.
Another concern is whether there is sufficient rental demand at 30.0%. Rental demand in ZIP 16665 is primarily for 2-bedroom units, which typically rent for between $500 and $749 per month, inclusive of utilities. While the 30.0% figure represents the portion of housing units that are rented, it does not necessarily indicate high demand. The actual demand can be assessed by looking at the vacancy rates and the competition from other rental properties in the area. Given the relatively low rental prices, it is likely that there is a steady demand, but this should be verified with local real estate agents or rental listings.
The final objection is whether Section 8 vouchers will keep pace with the market rents of $1,100. According to the Housing Choice Voucher Data Dashboard, voucher amounts are adjusted based on local market conditions, which means they should theoretically align with the ZIP code's fair market rents. However, the data does not provide specific figures for ZIP 16665. To get a clearer picture, one should consult the local Public Housing Agency (PHA) to understand the current and projected voucher payment standards for the area. It is also worth noting that voucher utilization rates can vary widely depending on local policies and funding availability.
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.