Section 8 Fair Market Rent (FMR) for ZIP 15267 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 15267, located in Pittsburgh, Pennsylvania, are based on the Specific Area Fair Market Rent (SAFMR) which is set for this specific ZIP code. For a two-bedroom apartment in fiscal year 2024, the SAFMR is $1230 per month. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards the rent for a unit of this size in this particular ZIP code.

To understand how this works for landlords, it's important to know that the voucher program does not cover the entire rent. Instead, it covers the difference between the tenant's contribution and the total rent. The tenant's portion is typically 30% of their adjusted income, but there is a minimum payment requirement. If the tenant's 30% contribution is less than the minimum, they must pay the minimum amount. The minimum contribution for a family of four in fiscal year 2024 is $575.

In addition to the base rent, the voucher also includes an allowance for utilities. However, the exact amount of the utility allowance is not specified in the data provided. Landlords should note that if the total rent plus utilities exceeds the SAFMR, the voucher will only cover up to the SAFMR amount. Any excess would need to be paid by the tenant out-of-pocket.

To illustrate, let's assume a tenant's contribution is the minimum required amount of $575. In this case, the voucher would cover the remaining $655 ($1230 - $575) towards the rent. If the actual market rent for a two-bedroom in this ZIP code were higher than $1230, the landlord would receive less than the market rent from the voucher program. Conversely, if the market rent is lower than $1230, the landlord could receive the full market rent plus the utility allowance, provided the total does not exceed the SAFMR.

Since the local market rent is not available, we cannot provide a precise reimbursement gap or surplus for a typical two-bedroom rental in ZIP 15267. However, landlords can use the SAFMR of $1230 as a benchmark for setting their rent prices. If the market rent is indeed higher, landlords will face a reimbursement gap and will have to rely on tenants paying the additional amount beyond the voucher. If the market rent is lower, landlords might benefit from a surplus, but it depends on the actual market conditions and the utility costs.

In conclusion, landlords in ZIP 15267 should carefully consider the SAFMR of $1230 when deciding whether to participate in the Section 8 program. It is crucial to factor in the tenant's contribution and any utility allowances to determine the net effect on your rental income.

Data Sources: FMR data from HUD (2027).

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.