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 | $1,170 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $66,164 | 2.28% | A+ |
| 3BR | $1,930 | $160,987 | 1.2% | B |
| 4BR | $2,090 | $476,913 | 0.44% | F |
| 5BR | $2,424 | $526,930 | 0.46% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 15025, which encompasses Clairton, PA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1260, while the Zillow Observed Rent Index (ZORI) indicates that the average market rent is $1302. This means that landlords can expect to receive $42 less per month from voucher tenants compared to the open-market rate. The percentage difference between these two figures is approximately 3.2%, calculated as ($1302 - $1260) / $1302 * 100.
In the context of Clairton, PA, where 25.1% of residents are renters, the median home value stands at $159,586, and the median household income is $76,531, the lower FMR poses a challenge for landlords and small-portfolio investors. The cost of housing voucher tenants below the open-market rate can impact profitability, especially considering the additional administrative burden and potential maintenance costs associated with rental properties.
The discrepancy between FMR and market rent suggests that landlords accepting Section 8 vouchers might experience a reduction in their overall yield. With the median income being relatively low at $76,531, the financial pressure on voucher holders could lead to higher risks of late payments or defaults. Moreover, the median home value provides insight into the broader economic landscape, indicating that property values in the area are not exceptionally high, which could limit appreciation potential for investment properties.
To summarize, the gap between the FMR of $1260 and the market rent of $1302 represents a direct reduction in monthly revenue for landlords who choose to participate in the Section 8 program. Given the economic conditions in Clairton, PA, this scenario requires careful consideration of the trade-offs between the stability provided by government-backed rents and the potential decrease in overall returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.