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 | $1,150 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,890 | $361,207 | 0.52% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 15086 in the Pittsburgh, PA HUD Metro FMR Area for fiscal year 2024 is set at $1730. This figure represents the maximum amount that a landlord can charge for a Section 8 voucher tenant. In comparison, the market rent for the same area, according to the Census ACS, stands at $2030. This indicates that landlords participating in the Section 8 program will experience marginal cash flow at the HUD FMR rate, as it falls below the current market rent by approximately $300 per unit.
To further analyze the investment potential, we can look at the rent-to-price ratio using the median home value of $375,490. Dividing the HUD FMR by the median home value yields a ratio of roughly 0.46%. This suggests that rental income generated from Section 8 vouchers alone would not significantly contribute to the overall value of the property, implying that appreciation or other factors might be more critical for investors in this market.
The dynamics between renting and buying in ZIP 15086 do not provide additional insight into cash flow challenges due to the lack of specific data on median days on market (DOM) and the percentage of price cuts. However, given the disparity between the HUD FMR and market rents, it is evident that landlords must carefully manage their expenses to ensure profitability when accepting Section 8 tenants at the FMR rate.
The strongest angle for investors in this ZIP code is likely stability. The consistent demand for affordable housing and the guaranteed nature of Section 8 payments offer a reliable income stream, even if the cash flow is marginal compared to market rents.
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.