Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
U.S. Census Bureau data (2024)
The analysis of Section 8 real estate in ZIP 15047 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 15047 in fiscal year 2024 is set at $1030. However, the market rent remains unreported, suggesting that it could be higher than the FMR.
This gap indicates that landlords accepting Section 8 vouchers in ZIP 15047 might face a cost of housing their tenants below open-market rates. Given the median home value of $162,102 and the median income of $45,792, the discrepancy between the FMR and potential market rents highlights the financial burden on landlords.
Specifically, if the market rent were to match the median home value's affordability ratio, it would likely exceed the FMR significantly. For instance, a property valued at $162,102 might reasonably expect a market rent that reflects a higher percentage of its value compared to the FMR. This means landlords could lose out on potential revenue by accepting Section 8 tenants.
In ZIP 15047, the lack of reported market rent figures makes it challenging to quantify the exact dollar amount and percentage gap. However, the context of the median home value and income suggests that the market rent is likely above the FMR, making it a scenario where landlords incur a cost by participating in the Section 8 program.
Investors should consider the long-term implications of this cost structure. While Section 8 provides stable, government-backed rental income, the potential difference between the FMR and market rent can affect overall yields and profitability. Landlords must weigh the benefits of guaranteed payments against the opportunity cost of renting below market rates.
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.