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 | $1,180 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,520 | $207,633 | 0.73% | D |
| 3BR | $1,940 | $243,687 | 0.8% | D |
| 4BR | $2,110 | $317,312 | 0.66% | D |
U.S. Census Bureau data (2024)
The ZIP code 15233 in Pittsburgh, PA, presents an interesting scenario for both renters and landlords. The median household income stands at $78,750, which is a solid figure. However, when compared to the market-rate rental price of $1,314 (ZORI), the financial landscape becomes more complex. This market rate exceeds the Fair Market Rent (FMR) of $1,130 set for zip code 15233 for fiscal year 2024, indicating a significant gap between what the market demands and what the government deems affordable.
To put this into perspective, let’s break down the numbers. A household earning the median income of $78,750 would have an annual disposable income of approximately $65,000 after accounting for basic living expenses. This translates to roughly $5,417 per month available for housing costs. At first glance, the $1,314 ZORI seems manageable, but it’s important to consider other financial obligations and savings goals that households typically have.
The disparity between the ZORI and the FMR is notable. While the market rate is higher, the government’s FMR provides a benchmark for what is considered affordable housing. For a household receiving a Section 8 Housing Choice Voucher, the maximum they would pay toward rent is 30% of their adjusted income, which is capped at the FMR level. In ZIP 15233, this means the voucher payment standard will cover up to $1,130 per month, leaving landlords to decide whether to accept the lower payment or seek cash-paying tenants willing to meet the higher market rates.
The competition among landlords in ZIP 15233 is influenced by the high percentage of renters—54.1% of the 2,596 population. This suggests a robust demand for rental properties, but also indicates a competitive market where landlords must strategically position themselves to attract tenants. The affordability gap means that landlords who choose to accept vouchers might find a steady stream of tenants, albeit at lower rates. On the other hand, those targeting cash-paying tenants could command higher rents but may face challenges in finding tenants who can afford them.
Takeaway for landlords: Accepting Section 8 vouchers at the FMR of $1,130 can ensure consistent occupancy without the risk of vacancy. However, targeting cash-paying tenants willing to pay the ZORI of $1,314 can yield higher monthly returns. Landlords should weigh these options carefully based on their investment goals and the local demand dynamics. Understanding the financial capabilities of potential tenants is key to making informed 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.