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 | $1,010 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $189,101 | 0.69% | D |
| 3BR | $1,660 | $290,474 | 0.57% | F |
| 4BR | $1,800 | $386,453 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 15043, Georgetown, PA, reveals an interesting contrast between the Federal Market Rent (FMR) and the actual market rents. The annualized 2BR FMR for FY 2024 stands at $990 per month, while the Census ACS reports the market rent at $1,113 per month. Given a median home value of $256,614, these figures translate into different gross yields.
Using the FMR of $990, the annual rental income would be $11,880. This results in a gross yield of approximately 4.63% when calculated against the median home value. In contrast, applying the market rent of $1,113 yields an annual income of $13,356, translating to a gross yield of about 5.21%. These calculations provide a direct comparison between the potential income streams under Section 8 versus market conditions.
The higher gross yield based on market rent suggests that properties rented at market rates could generate better returns for investors. However, the reality of the situation must also consider the local rental market dynamics. With a renter density of only 15.3%, it's evident that the majority of residents in Georgetown prefer homeownership over renting. This low rental density implies that finding tenants willing to pay market rent might be challenging, especially since the days on market (DOM) is listed as N/A, indicating either a very tight market or a lack of recent sales data.
In light of these factors, the gross yield derived from the FMR is likely more realistic for the area. Landlords and small-portfolio investors should prepare for potentially lower returns if they plan to participate in the Section 8 program. Despite the slightly lower gross yield, the stability and guaranteed income from Section 8 can outweigh the risks associated with a highly competitive market where securing tenants at market rates is uncertain.
To summarize, the gross yield from Section 8 at 4.63% is a more practical expectation compared to the higher 5.21% from market rents, considering the limited rental demand in Georgetown. Investors should weigh these yields carefully against their risk tolerance and investment goals.
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.