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 | $1,110 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,180 | $109,490 | 1.08% | B |
| 2BR | $1,430 | $145,721 | 0.98% | C |
| 3BR | $1,820 | $221,348 | 0.82% | C |
| 4BR | $1,980 | $332,876 | 0.59% | F |
| 5BR | $2,297 | $398,382 | 0.58% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 15218 in Pittsburgh, PA might raise several objections regarding the feasibility of investing in this area. Let's address these concerns with the available data.
Objection 1: Will FMR $1150 (zip FY 2024) cover the mortgage on a $209,230 home?
The Fair Market Rent (FMR) for ZIP 15218 in fiscal year 2024 is set at $1150. To determine if this will cover the mortgage on a $209,230 home, we need to estimate the monthly mortgage payment. According to Zillow, the median home value in 15218 is around $203,200. Assuming a typical mortgage rate and a 20% down payment, the monthly mortgage payment for a home priced at $209,230 would likely be lower than $1150. However, exact figures depend on the specific interest rate and terms of the mortgage. The data suggests that FMR can cover a substantial portion of the mortgage payment, making it feasible for landlords to rely on Section 8 payments.
Objection 2: Is there enough renter demand at 43.2%?
The percentage of housing units occupied by renters in ZIP 15218 is approximately 43.0%. While this figure indicates a significant portion of the housing stock is rented, it does not directly measure demand. The rental vacancy rate in 15218 is estimated at 3.4%, which is relatively low. A low vacancy rate typically implies higher demand, as fewer units are available for rent. This suggests that landlords who invest in properties in 15218 can expect steady occupancy rates.
Objection 3: Will vouchers keep pace with $1,204 market rents?
The market rent in ZIP 15218 is $1,204, while the FMR is $1150. There is a discrepancy between the two figures, indicating that vouchers may not fully cover market rents. However, the utilization rate of vouchers in the area is not directly provided in the data. Typically, voucher programs aim to maintain affordability for low-income households, which means they may not always align with market rents. Landlords should prepare for potential gaps between voucher amounts and market rents, but the program still provides a reliable source of income.
In summary, while the data does not provide a complete picture for every concern, it does indicate that investing in ZIP 15218 can be viable under certain conditions. The FMR is likely to cover a significant portion of the mortgage payment, there is sufficient renter demand based on the low vacancy rate, and although vouchers may not match market rents, they offer a stable income stream.
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.