Location: Johnstown, PA | Metro: Johnstown, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 16668 in Johnstown, PA MSA reveals several key points for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 16668 in fiscal year 2024 is set at $850. However, the Census ACS reports the current market rent at $601. This indicates that landlords might struggle to cover costs and make a profit if they align their rental rates with the market average, as the FMR suggests a higher benchmark for affordability.
Secondly, the acquisition affordability is questionable. With a median home value of $95,574, potential investors need to consider the cost of entry into the market. Unfortunately, the data on the number of days on the market (DOM) and the percentage of homes that required price cuts are not available, which means investors cannot fully assess how quickly homes sell and at what price adjustments. This lack of information makes it difficult to gauge the overall market dynamics and the ease of acquiring properties.
Lastly, regarding tenant demand, ZIP 16668 has a population of 3,507 individuals, with 20.3% of the residents being renters. This suggests that while there is a relatively small pool of potential tenants, there is still a significant portion of the population looking for rental housing. However, the low renter share might indicate that the area could be less attractive to those seeking rental properties compared to other regions.
Verdict: In ZIP 16668, the discrepancy between the FMR and the actual market rent poses challenges for achieving desired rental income levels. Although the median home value is relatively low, making property acquisition potentially affordable, the absence of DOM and price-cut data complicates the investment decision-making process. Additionally, the modest renter share suggests limited tenant demand, which could affect occupancy rates and rental stability. For landlords and small-portfolio investors, this area presents mixed opportunities and risks that require careful consideration before committing capital.
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.