Section 8 Fair Market Rent (FMR) for ZIP 15601 - 2027

Investment Score for ZIP 15601

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,270	$189,155	0.67%	D
3BR	$1,620	$263,061	0.62%	D
4BR	$1,760	$384,972	0.46%	F
5BR	$2,042	$438,547	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 15601 (Greensburg, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 15601 in Greensburg, Pennsylvania, indicate that the rent for a two-bedroom unit is set at $1170 per month. This represents 17.9% of the median household income in the area, which is $78,555. However, the actual rental market prices can be significantly higher. For instance, Zillow reports the median price for a two-bedroom home at $179,249, which translates into a price-to-FMR ratio of 12.8 times. This suggests that actual rents could be much higher than the FMR, creating a challenge for Section 8 voucher holders who are limited by the FMR cap. Given that the FMR for a two-bedroom unit is $1170, but the median home price implies a rental value far exceeding this amount, voucher holders may struggle to find suitable housing within their budget. The disparity between FMR and actual rents means that landlords who accept Section 8 vouchers must be willing to operate below market rates, which could limit their pool of tenants to those who qualify for the program. #### Affordability & Renter Profile ZIP code 15601 has a population of 56,425, with 24.9% of residents being renters. This indicates a significant portion of the community relies on rental housing, suggesting a robust demand for rental properties. The occupancy rate of 93.4% further supports the idea that the rental market is relatively tight, with few vacant units available. The median household income of $78,555 provides insight into the economic profile of potential renters. With the FMR for a two-bedroom unit at $1170, representing 17.9% of the median income, it appears that the majority of renters in the area can afford to pay above the FMR. However, the high price-to-FMR ratio suggests that the rental market is competitive and that many units are priced well above the FMR, making it difficult for lower-income households to secure affordable housing. #### Investor Angle From an investor perspective, operating at the FMR level in ZIP code 15601 can be challenging due to the high price-to-FMR ratio. A two-bedroom unit, which has a Zillow median price of $179,249, would likely command a rental price much higher than the FMR of $1170. Given the current market dynamics, an investor focusing solely on Section 8 vouchers would need to ensure that their rental properties are priced competitively while still adhering to the FMR guidelines. To determine if this ZIP code is cash-flow positive at the FMR, we need to consider the typical expenses associated with owning and managing rental properties. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a conservative estimate of 1% annual property tax, $100 monthly insurance, and $200 monthly maintenance, the total monthly expenses for a two-bedroom unit priced at $179,249 would be approximately: - Monthly mortgage payment (assuming a 30-year fixed-rate mortgage at 5%, 80% LTV): $930 - Property tax: $149 - Insurance: $100 - Maintenance: $200 Total monthly expenses: $1379 At the FMR of $1170, the net cash flow would be negative ($1170 - $1379 = -$209). Therefore, operating strictly at the FMR would not be financially viable for most investors. However, if an investor can find properties priced below the median or negotiate lower expenses, they might achieve positive cash flow. #### Specific Actionable Insights 1. **Focus on Lower-Cost Properties**: Investors should seek out properties priced below the median of $179,249 to ensure they can meet the FMR without incurring significant losses. For example, a two-bedroom unit priced at $150,000 would have a monthly mortgage payment of around $750, making it feasible to operate at the FMR of $1170. 2. **Consider Multi-Family Units**: Given the higher FMR for larger units (e.g., three-bedroom at $1500 and four-bedroom at $1610), multi-family units may offer better financial returns. These units can attract families who are more likely to qualify for higher-value Section 8 vouchers, thus providing a more stable income stream. 3. **Negotiate with Landlords**: For investors who already own properties in the area, negotiating with existing landlords to reduce expenses such as property taxes and maintenance costs can help achieve positive cash flow at the FMR. Additionally, securing long-term leases with Section 8 tenants can provide stability and predictability in cash flows. #### Bottom Line Based on the provided data, ZIP code 15601 presents a challenging environment for Section 8-focused investors due to the high price-to-FMR ratio and the tight rental market. While there is a significant demand for rental housing, the financial viability of operating strictly at the FMR is questionable. Therefore, the recommendation for investors is to **Skip** this ZIP code unless they can identify properties priced below the median or are willing to manage their expenses carefully to achieve positive cash flow. In summary, the rental market in ZIP code 15601 is competitive and expensive, with actual rents far exceeding the FMR. This makes it difficult for Section 8 voucher holders to find affordable housing and poses challenges for investors looking to operate at the FMR.

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.