Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 15635 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1030, while the market rent data is currently unavailable. This discrepancy is critical for landlords and small-portfolio investors to understand.
In ZIP 15635, where 49.5% of residents are renters, the median household income stands at $31,083, significantly lower than the national median of $80,734. This economic context underscores the importance of the Section 8 program in providing affordable housing options.
The FMR of $1030 represents the maximum amount that the Housing Choice Voucher Program will pay for a unit to be considered affordable. However, without specific market rent data, it's challenging to quantify the exact gap in dollars and percentage. If the market rent exceeds the FMR, landlords who accept voucher tenants will receive less than what they could potentially earn from open-market renters, which can impact their profitability.
When the FMR is higher than the market rent, voucher tenants can provide a stable and predictable source of income. Landlords benefit from guaranteed payments from the government, reducing the risk of non-payment or vacancy. This scenario makes the area a yield play for investors, as they can expect consistent returns despite potentially lower rents.
The median home value in ZIP 15635 is $162,500, indicating a relatively modest housing market. This figure aligns with the economic profile of the area, suggesting that housing costs are generally manageable for local residents. However, the lack of detailed market rent data complicates a precise financial analysis for landlords considering participation in the Section 8 program.
To summarize, the gap between the FMR and market rent in ZIP 15635 is crucial for investment decisions. With 49.5% of the population renting and a median income of $31,083, the economic landscape supports the role of the Section 8 program in ensuring affordable housing. Whether this gap favors a yield play or highlights the cost of housing voucher tenants below open-market rates depends on the actual market rent figures, which are currently not available.
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.