Section 8 Fair Market Rent (FMR) for ZIP 15317 - 2027

Investment Score for ZIP 15317

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	$1,180
1 Bedroom	$1,260
2 Bedrooms	$1,530
3 Bedrooms	$1,950
4 Bedrooms	$2,120
5 Bedrooms	$2,459
6 Bedrooms	$2,754
7 Bedrooms	$2,974
8 Bedrooms	$3,123

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,260	$125,424	1%	B
2BR	$1,530	$224,811	0.68%	D
3BR	$1,950	$336,287	0.58%	F
4BR	$2,120	$523,081	0.41%	F
5BR	$2,459	$709,143	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 15317 (Canonsburg, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 15317 is set by HUD for 2026. The FMRs for different unit sizes are as follows: - 0BR: $1120 - 1BR: $1210 - 2BR: $1460 (which represents 16.2% of the median household income) - 3BR: $1870 - 4BR: $2010 These FMRs serve as the benchmark for determining the maximum rental assistance that can be provided to low-income families through the Section 8 Housing Choice Voucher program. However, the actual rents in the area can be significantly higher. For instance, the Zillow median price for a 2BR unit is $215,001, which translates into a monthly rent of approximately $1792 based on typical mortgage payments (assuming a 30-year fixed rate mortgage at 4.5%). This means that the actual rent for a 2BR unit is nearly 1.23 times the FMR, as indicated by the price-to-FMR ratio of 12.3x. This high ratio creates significant constraints for voucher holders. They will find it challenging to secure housing that fits within their budget, especially since the FMR for a 2BR unit is only $1460, while the average market rent is $1792. This discrepancy can lead to a shortage of available units for Section 8 tenants, making it difficult for them to find suitable housing. #### Affordability & Renter Profile ZIP code 15317 has a population of 43,871, with 20.7% of residents being renters. The occupancy rate stands at 94.4%, indicating a relatively tight market where most available units are occupied. Given the median household income of $108,044, the 2BR FMR of $1460 represents a manageable portion of the income, but still leaves a significant gap between what voucher holders can afford and what the market demands. The high price-to-FMR ratio suggests that the market is competitive and likely favors owners over renters. The median income is quite robust, implying that many residents can afford higher rents without assistance. Consequently, the market may be less welcoming to those who rely on Section 8 vouchers due to the limited supply of affordable units. #### Investor Angle From an investor’s perspective, the ZIP code 15317 offers a mixed picture when considering cash flow and investment grade. The FMRs provide a baseline for rental rates that can be charged to Section 8 tenants. However, the actual market rents are much higher, which could make it difficult to attract non-voucher tenants if one relies solely on FMR rates. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the cost of acquiring and maintaining properties. Assuming a 2BR property costs around $215,000 and using a conservative estimate of 1% annual maintenance costs, the total annual cost would be approximately $2150. With a monthly rent of $1460, the annual rental income would be $17,520. After accounting for maintenance and other potential expenses, the net cash flow would still be positive, though modest. The investment grade for this ZIP code would depend on various factors such as the demand for affordable housing, the local economy, and the stability of rental markets. Given the robust median income and the high occupancy rate, there is a strong likelihood that the demand for housing will remain steady. However, the high price-to-FMR ratio indicates that the market is not particularly friendly towards Section 8 tenants, which could affect long-term investment returns. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Since the FMR for smaller units (0BR and 1BR) is lower, investing in these types of properties might be more attractive. For example, a 1BR unit with an FMR of $1210 could be rented out to Section 8 tenants at a slightly higher rate, say $1300, to ensure a positive cash flow while still being affordable. 2. **Consider Mixed-Income Developments**: Developing properties that cater to both Section 8 tenants and market-rate renters could help balance the financial viability of the project. By allocating a portion of units to Section 8 tenants and charging higher rents for the remaining units, investors can achieve better overall returns. 3. **Engage with Local Authorities**: Collaborating with local housing authorities can provide insights into the demand for Section 8 units and potentially secure long-term contracts. This can mitigate some of the risks associated with relying solely on FMR rates. #### Bottom Line For Section 8-focused investors, ZIP code 15317 presents a challenging yet potentially rewarding opportunity. The high price-to-FMR ratio suggests that the market is tight and not particularly accommodating to voucher holders. However, the robust median income and high occupancy rate indicate a stable demand for housing. Given these dynamics, the recommendation is to **Hold** on to existing investments in this ZIP code if they already cater to Section 8 tenants. New investments should be approached cautiously, focusing on smaller units or mixed-income developments to ensure financial viability. In summary, the ZIP code 15317 is not ideal for new Section 8-focused investments due to the high market rents, but existing investments can be maintained with strategic adjustments.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.