Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
When considering whether to purchase a property in ZIP code 15054 for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1030 cover the debt service on a $100,177 property?
To determine if the FMR covers the debt service, calculate the monthly mortgage payment for a $100,177 property. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly payment would be approximately $479. This amount is well below the FMR of $1030, indicating that the FMR does indeed cover the debt service. Therefore, the answer to this question is Yes.
2) Is the market rent above, at, or below the FMR?
The data indicates that the market rent for ZIP 15054 is currently N/A. Without specific market rent figures, it's impossible to make a direct comparison to the FMR. However, if historical trends suggest that market rents are typically above the FMR, then it might still be a viable investment. In this case, the answer is It Depends. Further investigation into local rental market conditions is necessary.
3) Are 33.7% of residents renters and do the N/A days on the market indicate sufficient demand?
ZIP 15054 has 33.7% of its residents as renters, which is a significant portion but not exceptionally high. The number of days on the market (DOM) is listed as N/A, making it difficult to assess how quickly properties sell or rent out. If the DOM is low, it suggests strong demand. However, with incomplete data, the answer to this question is also It Depends. Researching recent sales and rental activity will provide a clearer picture of demand.
Decision Tree Summary:
In conclusion, based on the provided data, the FMR is sufficient to cover debt service. However, without specific market rent figures and DOM data, the decision to invest in ZIP 15054 for Section 8 purposes hinges on further research into these areas. Ensure you gather comprehensive local market data before making your final decision.
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.