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 | $1,610 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,650 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,080 | $264,172 | 0.79% | D |
| 3BR | $2,650 | $360,832 | 0.73% | D |
| 4BR | $2,880 | $535,842 | 0.54% | F |
| 5BR | $3,341 | $801,516 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 15241 in Pittsburgh, PA, provides valuable insights into investment opportunities. For a two-bedroom property, the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $1,580 per month. This translates to an annual rental income of $18,960. The market rent, as indicated by ZORI, stands at $1,600 monthly, or $19,200 annually.
To calculate the gross yield, we use the median home value of $477,189. The gross yield based on the FMR would be approximately 4%. This is calculated by dividing the annual rental income ($18,960) by the median home value ($477,189), then multiplying by 100. Similarly, using the market rent, the gross yield would be slightly higher at about 4.03%, calculated by dividing $19,200 by $477,189 and multiplying by 100.
Given the 16.3% renter density in the area, it is more realistic to assume that the majority of properties will command market rents rather than FMRs. Renter density indicates the proportion of renters in the population, suggesting a robust demand for rental properties. However, the N/A-day Days on Market (DOM) figure means there is insufficient data to determine how quickly properties are rented out, which could affect vacancy rates and thus the overall yield.
In conclusion, while the gross yields derived from both FMR and market rent are nearly identical, the market rent scenario is more likely to reflect actual rental income due to the higher renter density. Investors should consider these figures when evaluating potential returns on investment properties in ZIP 15241. The slight difference in gross yields between the two scenarios underscores the importance of understanding local rental dynamics and the specific terms offered under Section 8 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.