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 | $980 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $160,017 | 0.79% | D |
| 3BR | $1,620 | $222,140 | 0.73% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1150 for ZIP 15464 (Mill Run, PA) can sufficiently cover the mortgage on a home priced at $193,979. To address this, let's break down the numbers. Assuming a typical 30-year fixed-rate mortgage at an interest rate of around 4%, the monthly payment on a $193,979 home would be approximately $950, well below the FMR. This means that even with a conservative estimate, the rental income could comfortably cover the mortgage payments, leaving room for other expenses such as maintenance, property taxes, and insurance.
The second objection concerns the level of renter demand in the area, which stands at 16.0%. While this percentage might seem low to some, it is important to note that the demand for rental properties in ZIP 15464 is steady. The 16.0% figure represents the proportion of the total housing units that are rented out, indicating a stable rental market. Furthermore, the low percentage suggests less competition among landlords, making it easier to find tenants willing to pay the FMR. However, it's worth noting that while the data provides insight into the current state of demand, it does not predict future changes in the local economy or population growth, which could affect demand.
The final concern is whether Housing Choice Vouchers will keep pace with the local market rents, given that the data indicates N/A for market rents. This lack of specific market rent data makes it challenging to provide a definitive answer. Nonetheless, the U.S. Department of Housing and Urban Development (HUD) periodically adjusts voucher amounts to reflect the cost of living and market conditions. In areas where FMR is set at $1150, HUD aims to ensure that voucher holders can access a decent standard of living, which typically includes finding homes within a reasonable range of the FMR. Therefore, while the exact relationship between voucher amounts and market rents is unclear without specific market rent data, the intention of the program is to support affordable housing, aligning with the FMR target.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.