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 | $920 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $132,719 | 0.9% | C |
| 3BR | $1,520 | $173,737 | 0.87% | C |
| 4BR | $1,650 | $233,285 | 0.71% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 15122, located in West Mifflin, PA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1,050, while the market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $1,345. This means that the FMR is $295 lower than the market rent, representing a 21.9% discount.
In this context, landlords and small-portfolio investors must understand the implications of this gap. Since the FMR is less than the market rent, accepting Section 8 tenants means renting units at a rate below the open-market value. The cost of housing voucher tenants below open-market rates can be seen in terms of lost revenue. For instance, if a landlord has 10 units rented at the FMR instead of the market rate, they would lose approximately $29,500 annually in potential rental income.
West Mifflin's rental market is characterized by a 21.6% share of renters, a median home value of $160,916, and a median income of $72,485. These figures suggest that the area is moderately affordable, yet the income levels indicate that many residents might still struggle to afford market-rate rents. As such, the Section 8 program plays a crucial role in providing affordable housing options for low-income families.
However, for landlords, the decision to participate in the Section 8 program should be carefully weighed against the financial impact. While it ensures a steady stream of income, it also means foregoing the higher rents that could be achieved in a competitive market. Given the median income, landlords might consider the broader social benefits of providing affordable housing alongside the economic realities of their investment decisions.
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.