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 | $1,740 |
| 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)
To determine if you should buy in ZIP code 15209 (Pittsburgh, PA) for Section 8 investment, follow this decision tree:
Step 1: Does the Fair Market Rent (FMR) of $1,130 cover the debt service on a property valued at $235,352?
No: The FMR does not clear the debt service on a property of that value. This means the rental income would be insufficient to meet the mortgage payments and other expenses associated with owning a $235,352 property.
Yes: Proceed to Step 2.
Step 2: How does the market rent ($1,231 ZORI) compare to the FMR?
Above FMR: The market rent exceeds the FMR, indicating that there is potential for higher returns if you can secure non-Section 8 tenants. However, you must also consider the demand for Section 8 housing.
At or Below FMR: The market rent is either at or below the FMR, making it more suitable for Section 8 tenants. Move to Step 3.
Step 3: Is the demand sufficient given the 25.6% of renters and the unknown number of days on the market (DOM)?
It Depends: With 25.6% of the population renting, there is a moderate level of demand for rental properties. However, the lack of data on the number of days on the market (DOM) makes it difficult to assess how quickly properties are rented out. If the DOM is low, indicating quick turnover, then the demand could be considered strong despite the limited data. Conversely, if the DOM is high, it suggests a slower rental market and potentially lower demand.
In conclusion, ZIP 15209 presents a mixed picture for Section 8 investment. The FMR does not cover the debt service on a $235,352 property, which is a significant drawback. While the market rent is slightly above the FMR, suggesting some flexibility, the demand for Section 8 housing hinges on the unknown DOM. A thorough analysis of local market conditions and a closer look at specific property values and costs would be necessary to make an informed decision.
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.