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 | $950 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $73,328 | 1.68% | A+ |
| 3BR | $1,570 | $150,801 | 1.04% | B |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 15468, which encompasses New Salem, PA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1090, whereas the Census ACS reports the market rent at $782. This means that the FMR is $308 higher than the market rent, representing a 39.4% premium.
The higher FMR compared to the market rent makes New Salem an attractive location for landlords and small-portfolio investors looking to maximize their rental yields. Voucher tenants can provide a stable source of income, ensuring that properties are rented out at rates above the local market average. The guaranteed income from the voucher program allows landlords to achieve higher returns on investment, even in a market where rents are generally lower.
In the context of New Salem, PA, where only 16.6% of residents are renters and the median home value stands at $96,227, the relatively low median income of $69,375 suggests that many potential renters might struggle to afford market-rate housing without assistance. The Section 8 program, therefore, serves as a vital bridge, enabling those who qualify for vouchers to secure housing at rates that are more aligned with their financial capabilities.
However, it's important to note that while the FMR is higher than the market rent, landlords must still adhere to the rules and regulations of the voucher program. This includes undergoing regular inspections and maintaining properties to a certain standard, which can incur additional costs. Despite these requirements, the ability to rent properties at $1090 instead of the market rate of $782 offers a compelling reason for landlords to participate in the Section 8 program.
To summarize, the gap between the FMR and market rent in ZIP 15468 presents an opportunity for landlords to increase their rental yields. With the support of the Section 8 voucher system, landlords can rent their properties at rates that are significantly higher than the local market, thus improving their financial performance in a region where the overall rental market is less robust.
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.