Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 15446 reveals a unique market situation that falls into a category of low yield and low stability. This classification is driven by specific figures from the data provided.
Firstly, the yield is determined by comparing the Fair Market Rent (FMR) and the median home value. The FMR for ZIP 15446 in fiscal year 2024 is set at $940. However, the median home value stands at $148,860. Given these numbers, it's evident that the rental income does not provide a significant return on investment relative to the property value. To put this into perspective, if we consider a conservative estimate of a 1% annual return on investment, the expected annual rent would need to be approximately $1,488.60, which is significantly higher than the $940 FMR. This indicates a lower yield potential compared to other markets where the FMR might be closer to or exceed 1% of the median home value.
Secondly, the stability of the market is assessed by examining the percentage of renters and the typical days on the market (DOM). In ZIP 15446, there is a reported 0.0% of renters, which suggests an almost entirely owner-occupied area. This figure directly impacts the stability of cash flow for landlords since a low percentage of renters means fewer opportunities for rental income. Additionally, the lack of available data regarding the DOM and income levels further underscores the instability of the market. These missing pieces indicate a less predictable environment for small-portfolio investors looking to generate steady cash flow from rental properties.
In conclusion, ZIP 15446 does not present itself as a high-yield market due to the low FMR relative to the median home value. It also lacks the characteristics of a steady-cashflow zone, given the minimal presence of renters and the absence of critical data points such as DOM and income levels. Therefore, this area is best classified as a low-yield, low-stability market, unsuitable for flip-style strategies or steady cash flow generation through rentals.
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.