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 | $1,040 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,610 | $390,028 | 0.41% | F |
| 4BR | $1,750 | $472,698 | 0.37% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 15636 is fundamentally about the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1060, while the Census American Community Survey (ACS) indicates that the market rent stands at $1362. This creates a gap of $302 per month, representing a 28.5% difference.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must understand the implications of accepting housing vouchers. The cost of housing voucher tenants below open-market rates means that landlords will receive a lower rental income, which can impact their cash flow and profitability. Specifically, the $302 monthly shortfall can significantly affect the overall yield of an investment property.
In the broader context of ZIP 15636, where only 15.1% of residents are renters, the demand for rental properties might be lower compared to areas with higher percentages of renters. Additionally, with a median home value of $397,328 and a median income of $145,492, the area generally supports homeownership over renting, further highlighting the importance of understanding the financial dynamics involved when considering Section 8 participation.
To summarize, the gap between FMR and market rent in ZIP 15636 is substantial. Accepting housing vouchers means landlords must account for a significant reduction in rental income, which can be a critical factor in investment decisions. Given the local context, this decision should be made with careful consideration of the overall rental market dynamics and the financial health of the investment portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.