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 | $780 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $75,485 | 1.34% | A |
| 3BR | $1,300 | $128,764 | 1.01% | B |
| 4BR | $1,420 | $127,044 | 1.12% | B |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 15417, Brownsville, PA, reveals an interesting scenario when comparing the Federal Market Rent (FMR) and the actual market rent against the median home value.
The annualized FMR for a 2-bedroom apartment in Brownsville, PA, for fiscal year 2024 is set at $950 per month. This translates to an annual rental income of $11,400. Given the median home value in the area is $96,522, the implied gross yield based on the FMR would be approximately 11.8%. The calculation is straightforward: divide the annual rental income by the median home value, resulting in a gross yield of 11.8%.
In contrast, the market rent for a 2-bedroom apartment in Brownsville, PA, as per the Census ACS data, is $693 per month. This equates to an annual rental income of $8,316. Using the same median home value of $96,522, the implied gross yield based on the market rent would be around 8.6%. Again, the gross yield is calculated by dividing the annual rental income by the median home value.
The difference between these two gross yields is significant, with the FMR scenario offering a higher return. However, the actual market conditions must be considered. With a renter density of 30.7%, it's important to note that the majority of residents in Brownsville, PA, are homeowners, suggesting a limited pool of potential tenants for rental properties. Additionally, the N/A-day Days on Market (DOM) indicates incomplete data regarding how quickly rental units are occupied, which could imply challenges in maintaining consistent occupancy rates.
Given these factors, the market rent scenario appears more realistic for most investors. While the FMR provides a higher gross yield, the actual market conditions, including lower renter density and potentially longer vacancy periods, suggest that the $693 monthly rate is a more reliable indicator of what can be expected in terms of rental income. Therefore, the 8.6% gross yield based on market rent should be the primary focus for those considering investment in Brownsville, PA.
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.