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 | $910 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $142,319 | 0.82% | C |
| 3BR | $1,490 | $209,174 | 0.71% | D |
| 4BR | $1,620 | $297,179 | 0.55% | F |
| 5BR | $1,879 | $214,068 | 0.88% | C |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 15068, which encompasses New Kensington, PA, and is part of the Pittsburgh, PA HUD Metro FMR Area, is set at $1030 for fiscal year 2024. This figure closely aligns with the market rent of $1,041, as indicated by ZORI (Zillow Observed Rent Index), suggesting that voucher tenants generally cashflow at FMR levels, though marginally so given the slight difference between the two rates.
To further analyze the investment potential, consider the median home value in this area, which stands at $166,063. The rent-to-price ratio can be calculated using these figures. With an average monthly rent of $1,041, the annual rent would be approximately $12,492. Dividing this by the median home value yields a rent-to-price ratio of about 7.5%. This ratio indicates that rental income is relatively modest compared to the purchase price of homes, making it less favorable for buy-and-rent strategies.
The dynamics of the rental market versus the buying market are also relevant. The median Days on Market (DOM) is 47 days, and the price-cut share is a mere 0.2%. These figures suggest that the rental market is stable and competitive, with properties being sold quickly without significant price reductions. However, they do not directly impact the decision-making process for Section 8 investors, who are primarily concerned with rental income and FMR alignment.
In conclusion, the strongest angle for investors in ZIP 15068 is likely cashflow, as voucher tenants can achieve positive cashflow at the FMR rate, albeit marginally. Given the competitive nature of the local real estate market, this provides a solid foundation for steady returns on investment through rental income.
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.