Section 8 Fair Market Rent (FMR) for ZIP 15336 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 15336, located in Pittsburgh County, Pennsylvania, are straightforward when you understand the key components involved. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1060. This figure represents the maximum amount that the housing authority will reimburse a landlord for a two-bedroom rental unit under the Section 8 program.

To break it down further, the SAFMR does not directly represent the total rent a landlord can charge. Instead, it's the cap on what the government will pay towards the rent. Tenants are typically responsible for paying 30% of their adjusted income toward rent. If we assume an average adjusted income of $1766.67 (the amount that would result in a 30% contribution of $530, which is the average utility allowance plus a reasonable estimate for tenant rent), then the tenant would contribute approximately $530 toward the rent. This leaves a government reimbursement of $530 to cover the remaining rent.

In addition to the tenant's portion and the government reimbursement, there are utility allowances. For a two-bedroom apartment, these allowances can vary but are generally around $200-$250 per month. Assuming a utility allowance of $225, this brings the total monthly income a landlord would receive to $755 ($530 from the tenant + $225 utility allowance).

Given that the local market rent figures are currently unavailable, it's important to compare the SAFMR of $1060 to the general market conditions. Typically, if the local market rent exceeds the SAFMR, landlords might find themselves in a reimbursement gap, where they must subsidize the difference between the market rent and the SAFMR. Conversely, if the market rent is lower than the SAFMR, landlords could potentially receive a surplus, meaning the government pays more than the market rate.

In ZIP 15336, the reimbursement gap for a two-bedroom apartment is $305 per month, calculated as the difference between the SAFMR of $1060 and the total income received of $755. This means landlords should be prepared to accept a rent amount that is less than the SAFMR, unless the local market rent is significantly below the SAFMR, in which case they might see a surplus.

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.