Section 8 Fair Market Rent (FMR) for ZIP 15237 - 2027

Investment Score for ZIP 15237

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,320
1 Bedroom	$1,400
2 Bedrooms	$1,700
3 Bedrooms	$2,170
4 Bedrooms	$2,360
5 Bedrooms	$2,738
6 Bedrooms	$3,067
7 Bedrooms	$3,312
8 Bedrooms	$3,478

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,400	$121,691	1.15%	B
2BR	$1,700	$229,607	0.74%	D
3BR	$2,170	$325,394	0.67%	D
4BR	$2,360	$495,658	0.48%	F
5BR	$2,738	$564,824	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 15237 (Pittsburgh, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 15237, as per the 2026 data, is set at $1580 for a two-bedroom unit. This amount represents approximately 17.3% of the median household income of $109,895 in the area. However, it is important to note that the actual rental prices can be significantly higher. The Zillow median price for a two-bedroom unit in this ZIP code is $227,786, which translates to a price-to-FMR ratio of 12.0x. This means that the average rent for a two-bedroom unit could be around $1580 * 12 = $18,960 annually, or roughly $1,580 monthly if we assume a similar ratio applies to monthly rents. Given this disparity, Section 8 voucher holders face significant constraints in finding affordable housing. The FMR is designed to cover only a portion of the market rate, meaning that landlords who accept vouchers might struggle to compete with those who do not. Additionally, the occupancy rate of 94.0% suggests that there is little vacancy for voucher holders to leverage, further tightening their options. #### Affordability & Renter Profile ZIP code 15237 has a relatively high median household income of $109,895, indicating that the residents here are generally well-off. Only 23.3% of the population are renters, suggesting that homeownership is prevalent. Given the high median income and low percentage of renters, it is likely that those who do rent are either young professionals or families who have chosen to rent rather than buy due to lifestyle preferences or financial considerations. The tight market conditions, with an occupancy rate of 94.0%, indicate that there is a strong demand for rental properties. This makes it challenging for voucher holders to find suitable housing, as they are limited by the FMR rates. Landlords who accept vouchers must balance the benefits of stable government payments against the potential drawbacks of lower rents compared to market rates. #### Investor Angle From an investor perspective, the ZIP code 15237 presents mixed opportunities. The FMR for a two-bedroom unit is $1580, but the actual market rent is much higher, around $18,960 annually. If an investor were to purchase a property and rent it out at the FMR, the cash flow would likely be negative, given the high median home prices and associated costs such as property taxes, insurance, and maintenance. To determine the investment grade, we need to consider the potential returns and risks. With the occupancy rate being so high, there is a strong likelihood of consistent tenancy, which is beneficial. However, the low percentage of renters and the high cost of entry into the market make it less attractive for investors focused solely on Section 8 vouchers. The high price-to-FMR ratio also suggests that the market is not aligned with the FMR, making it difficult for voucher holders to find affordable housing. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as studios or one-bedroom apartments. These units typically have lower FMRs and might be more affordable for voucher holders. For example, the FMR for a one-bedroom unit is $1310, which is still a significant discount from the market rate. This could provide a better chance of attracting tenants and maintaining positive cash flow. 2. **Consider Gentrification Trends**: ZIP code 15237 is part of Allegheny County, which has seen gentrification trends in recent years. Investors should monitor these trends closely, as they can impact both the demand for rental properties and the overall market dynamics. If gentrification continues, the number of renters might increase, potentially improving the prospects for Section 8-focused investments. 3. **Explore Government Programs**: Investors should explore additional government programs that might complement Section 8 vouchers. For instance, some areas offer tax incentives or subsidies for landlords who accept vouchers. Understanding these programs can help offset the lower rents and improve the overall financial viability of the investment. #### Bottom Line For investors focused on Section 8 vouchers, the ZIP code 15237 presents a challenging environment due to the high price-to-FMR ratio and tight market conditions. While there is a strong demand for rental properties, the high cost of entry and the limited number of renters make it less favorable for Section 8-focused investments. Therefore, the recommendation for this ZIP code is to **Skip** unless investors can find ways to mitigate the financial risks through smaller units or complementary government programs.

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.