Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
U.S. Census Bureau data (2024)
The analysis for ZIP 15077 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 15077 in fiscal year 2024 is set at $1080, while the Census ACS data indicates a market rent of $640. This creates a $440 gap, representing approximately a 68.75% premium on the FMR over the market rent.
In ZIP 15077, where only 10.8% of residents are renters and the median household income stands at $64,583, landlords can leverage this discrepancy to their advantage. Voucher tenants provide a steady and reliable source of income, as the government will cover the difference between the actual rent and the FMR, ensuring that landlords receive a higher rate compared to the open market. This makes it a strong yield play for landlords who can attract and retain voucher tenants.
The gap also highlights the cost implications for housing voucher tenants. While the government aims to provide affordable housing options, the reality in ZIP 15077 is that voucher tenants might face challenges in finding suitable accommodation at rates below the FMR. This could result in increased competition for affordable units and potentially longer wait times for voucher recipients seeking housing.
Given the context of ZIP 15077, landlords should be aware that the median home value is not available, which could indicate a primarily rental-focused area or a lack of comprehensive data. However, the median income figure suggests that many residents might qualify for housing assistance programs, making the area attractive for those willing to participate in the Section 8 program.
Landlords and small-portfolio investors should consider the benefits of participating in the Section 8 program, particularly in light of the substantial gap between the FMR and the market rent. This gap ensures a higher rental income compared to the open market, offering a compelling financial incentive for those who can navigate the requirements and regulations associated with the program.
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.