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 | $920 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $150,847 | 0.79% | D |
| 3BR | $1,520 | $213,573 | 0.71% | D |
| 4BR | $1,650 | $248,163 | 0.66% | D |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 15027 (Conway, PA) for Section 8 investment, follow this decision tree:
1) Does FMR $900 (zip FY 2024) clear debt service on a $197,769 property?
It depends. To make this determination, you must calculate the debt service coverage ratio (DSCR), which is the ratio of net operating income (NOI) to total debt service. Assuming an average interest rate of 4.5%, the annual debt service on a $197,769 property would be approximately $11,350. The Fair Market Rent (FMR) of $900 per month translates to $10,800 annually. This means the FMR alone does not cover the debt service. However, if you can maintain a vacancy rate lower than 10% and add other income sources, such as laundry facilities or parking fees, the FMR could potentially cover the debt service.
2) Is market rent $917 (Census ACS) above, at, or below FMR?
The market rent of $917 is slightly above the FMR of $900. This indicates that properties in Conway, PA can command a higher rent than what is covered by the Section 8 program. Landlords who are willing to accept Section 8 tenants can still achieve a competitive rental rate, although they will not be able to charge the full market rent.
3) Are 32.7% renters + N/A-day days on market (DOM) enough demand?
Yes, but cautiously. With 32.7% of residents being renters, there is a significant portion of the population that relies on rental housing. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented out. If the DOM is high, it might indicate challenges in finding tenants, even with a decent rental percentage. Conversely, a low DOM suggests strong demand. Given the limited data, assume the demand is sufficient but be prepared for potential fluctuations.
In conclusion, purchasing a property in ZIP 15027 for Section 8 investment hinges on your ability to manage a property with an FMR that barely covers debt service, willingness to accept a slightly reduced rent compared to the market rate, and readiness to navigate potential variability in tenant acquisition speed despite a substantial rental population share.
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.