Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP 15427 for Section 8 properties, landlords must evaluate several key factors based on the latest data. Here is a structured decision tree to guide your investment decision.
1. Debt Service Coverage Ratio (DSCR): The Fair Market Rent (FMR) for ZIP 15427 in fiscal year 2024 is set at $1060. This figure needs to be sufficient to cover the debt service on any potential property. Without specific property details, such as mortgage payments and other expenses, it's impossible to calculate an exact DSCR. However, if you can find a property where $1060 per month covers all debt-related costs, then proceed to the next question. Otherwise, the answer is No.
2. Market Rent vs. FMR: The average market rent in ZIP 15427, according to Census ACS data, is $922. This is below the FMR of $1060. Landlords who qualify for Section 8 can expect higher rental income compared to the general market, which makes the area potentially attractive for Section 8 investments. If market rent is equal to or above FMR, the area would be less favorable for Section 8 properties. In this case, the answer is Yes.
3. Rental Demand: The rental demand in ZIP 15427 is composed of two main elements: the percentage of renters and the days on the market (DOM) for rental listings. Currently, 18.1% of residents are renters. Additionally, the DOM for rental listings is not specified, but it's crucial to assess if this is low enough to indicate strong demand. If the DOM is low, say under 30 days, and combined with the renter percentage, this suggests there is enough demand to support Section 8 properties. In such a scenario, the answer is Yes. Conversely, if the DOM is high, indicating weak demand, the answer shifts to No.
If all three conditions are met—$1060 FMR clears debt service, market rent is below FMR, and there is strong rental demand—the investment in ZIP 15427 for Section 8 properties is advisable. If any condition is not satisfied, reconsider the investment or seek additional data points to refine your analysis.
Data Sources: FMR data from HUD (2027). 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.