Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 15432 reveals a significant gap between the Fair Market Rent (FMR) set at $920 for fiscal year 2024 and the actual market rent reported at $1,135 according to the Census ACS data. This discrepancy amounts to a difference of $215, representing a 23.3% discount for landlords who choose to participate in the Section 8 program.
In this scenario, where the FMR is lower than the market rent, landlords must consider the cost implications of accepting housing vouchers that pay below open-market rates. The FMR of $920 is notably less than what the market dictates, meaning landlords will receive $215 less per month for renting out their properties compared to market rates. This situation can be financially challenging for landlords, especially when factoring in maintenance costs, property taxes, and other expenses associated with rental properties.
The ZIP code 15432 has a rental population of 29.1%, indicating a substantial portion of residents rely on rental housing. With a median income of $74,500, the disparity between FMR and market rent becomes even more pronounced. Voucher tenants benefit from reduced rent, but landlords must weigh this against the potential for higher vacancy rates and the difficulty in finding tenants willing to pay the FMR rate.
Landlords should also be aware that participating in the Section 8 program comes with additional administrative burdens and requirements. While the program can provide stable tenants and a guaranteed source of income, it is important to understand the trade-offs involved. Specifically, the lower rental income from FMR versus market rent means that landlords might need to adjust their expectations regarding yield and profitability in this area.
To summarize, the gap between the FMR and market rent in ZIP 15432 presents a clear financial decision point for landlords. Accepting Section 8 vouchers at $920 per month instead of market rent of $1,135 represents a 23.3% reduction in income. Landlords must decide if the benefits of stable tenancy and government-backed payments outweigh the financial impact of renting below market rates.
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.