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 | $840 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $890 | $88,267 | 1.01% | B |
| 2BR | $1,080 | $137,675 | 0.78% | D |
| 3BR | $1,380 | $192,222 | 0.72% | D |
| 4BR | $1,500 | $276,073 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 15065, located in Natrona Heights, PA, within the Pittsburgh, PA HUD Metro FMR Area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 is set at $920, which exceeds the market rent of $866. This creates a positive spread that benefits landlords by ensuring they receive higher rental payments through the Section 8 program compared to the local market rates.
This advantage is further solidified by the median home value of $169,197, indicating a relatively stable and affordable housing market. Landlords can rely on steady income from the guaranteed Section 8 payments without the risk of overpricing their properties beyond what the market can bear.
The ZIP code does not present significant opportunities for appreciation plays, as there is no specific percentage given for price-cut shares or days on market (DOM). These metrics would typically highlight areas where property values are likely to increase or where there is a high turnover rate of homes, both of which are not evident in the provided data.
While the area has a 21.1% renter share and a median income of $67,803, these factors alone do not make it a strong diversifier. Diversification in real estate usually involves spreading investments across different types of properties or geographic locations to mitigate risks. However, the presence of a significant renter population and moderate income levels does contribute to the stability of the rental market, making it a reliable component of a diversified investment portfolio.
In conclusion, ZIP 15065 is best positioned as a cash-flow anchor due to the favorable spread between the FMR and market rent. This ensures landlords receive consistent and reliable income, which is crucial for maintaining financial stability in a Section 8 portfolio.
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.