Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
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 | $930 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $990 | $84,435 | 1.17% | B |
| 2BR | $1,200 | $143,414 | 0.84% | C |
| 3BR | $1,530 | $224,969 | 0.68% | D |
| 4BR | $1,660 | $313,934 | 0.53% | F |
| 5BR | $1,926 | $296,344 | 0.65% | D |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP 15010 (Beaver Falls, PA) for Section 8 must follow a structured decision-making process based on the following criteria:
1. Debt Service Coverage Ratio (DSCR): The Fair Market Rent (FMR) for ZIP 15010 in fiscal year 2024 is set at $990. To determine if this clears debt service on a property valued at $194,733, one must calculate the DSCR. Assuming a typical mortgage rate of 4.5% and property taxes around 1.5%, the annual debt service would be approximately $12,865. With an FMR of $990, the annual rental income would be $11,880, which is insufficient to cover the debt service. Therefore, the answer to the first question is No.
2. Market Rent vs. FMR: The Zillow Observed Rent Index (ZORI) for ZIP 15010 is $972, which is slightly below the FMR of $990. This indicates that the market rent is nearly in line with the government-set FMR, making it feasible to charge the FMR without significant vacancy concerns. However, since the market rent is just below the FMR, landlords might face some competition from non-Section 8 properties. The answer to the second question is It Depends. If the landlord can secure a tenant willing to pay the FMR, then it is favorable. Otherwise, they may need to adjust their expectations.
3. Rental Demand: In ZIP 15010, 25.1% of residents are renters, and the days on market (DOM) average is 43 days. These figures suggest a moderate level of rental demand. However, given that the FMR does not sufficiently cover debt service, the demand alone is not enough to justify investment. The answer to the third question is No.
Decision Tree Summary:
In conclusion, based on the provided data, a landlord should not buy in ZIP 15010 for Section 8 purposes due to the inability of the FMR to cover the debt service on a property valued at $194,733. While the market conditions suggest a reasonable demand and competitive rents, these factors are overshadowed by the financial mismatch between FMR and debt service requirements.
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.