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 | $870 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $66,098 | 1.69% | A+ |
| 3BR | $1,430 | $142,234 | 1.01% | B |
| 4BR | $1,550 | $157,811 | 0.98% | C |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 15059 (Midland, PA) provides a clear picture of the potential returns for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment at $870 per month for FY 2024, the annualized rental income would be $10,440. Given the median home value of $104,244, the implied gross yield for a Section 8 property in this ZIP code is approximately 10%. This is calculated by dividing the annual rental income by the median home value.
In contrast, the market rent for a 2-bedroom apartment in Midland, PA, as indicated by ZORI (Zillow's Estimated Rental Income), stands at $995 per month. When annualized, this results in an annual rental income of $11,940. Using the same median home value, the implied gross yield for a market-rent property is roughly 11.5%.
Given the 34.2% renter density in the area, it is evident that there is a significant demand for rental properties. However, the N/A-day DOM (Days on Market) suggests that either the data is incomplete or that properties are being leased quickly, indicating strong tenant interest. Considering these factors, the market rent scenario appears more realistic for achieving higher gross yields. While Section 8 properties offer stable and government-backed rental income, they typically come with lower rents and stricter regulations compared to market-rate rentals.
For investors looking to maximize their gross yields, the market rent scenario presents a better opportunity. The 11.5% gross yield from market-rate rentals is 1.5 percentage points higher than the 10% gross yield from Section 8 properties. This difference, though seemingly small, can significantly impact the overall investment performance when scaled across multiple units or properties.
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.