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 | $900 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $156,352 | 0.74% | D |
| 3BR | $1,480 | $203,981 | 0.73% | D |
| 4BR | $1,610 | $271,955 | 0.59% | F |
| 5BR | $1,868 | $263,993 | 0.71% | D |
U.S. Census Bureau data (2024)
In evaluating the potential of investing in ZIP 15227, which encompasses Brentwood, Pennsylvania, several key concerns arise regarding the financial viability and market conditions. Let's address these points directly.
Objection 1: Will FMR $980 (zip FY 2024) cover the mortgage on a $192,950 home?
The Fair Market Rent (FMR) for ZIP 15227 in fiscal year 2024 is set at $980. To determine if this amount can cover the mortgage, consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $192,950 home would be approximately $1,040. This means that the FMR of $980 falls short by around $60 per month, indicating that additional income sources or a lower purchase price might be necessary to ensure profitability.
Objection 2: Is there enough renter demand at 27.6%?
The rental vacancy rate for ZIP 15227 stands at 27.6%. This figure suggests a relatively high vacancy rate compared to national averages, which typically hover around 7%. A high vacancy rate implies that there may not be sufficient tenant demand to consistently fill properties. However, it's important to note that the rental market can fluctuate based on economic conditions and local factors. While the current rate is concerning, further investigation into the underlying causes of high vacancies could provide insights into mitigating risks.
Objection 3: Will vouchers keep pace with $1,256 market rents?
The average market rent in ZIP 15227 is $1,256. The Housing Choice Voucher program, commonly known as Section 8, aims to subsidize rents for low-income families. However, the voucher amounts are determined by HUD and are subject to change based on local market conditions and federal funding. In ZIP 15227, the FMR of $980 indicates that landlords may need to adjust their expectations or seek alternative financing to make up the difference between the voucher amount and market rent. This gap could pose a challenge for maintaining profitability.
While the data provides a clear snapshot of the current situation in ZIP 15227, it's essential to conduct a thorough analysis of local trends and economic forecasts to make informed investment decisions. Addressing these concerns requires careful planning and consideration of all available resources.
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.