Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 15637 reveals a critical gap between the Fair Market Rent (FMR) and the actual market rent, which significantly impacts the potential returns for landlords and small-portfolio investors involved with Section 8 housing vouchers. For fiscal year 2024, the FMR is set at $1190, while the Census ACS data indicates that the market rent stands at $1155. This means there is a positive gap of $35 in favor of the FMR, representing an increase of approximately 3% over the market rent.
This gap makes ZIP 15637 a favorable location for voucher tenants, turning it into a yield play for landlords. Despite the market rent being slightly lower, the guaranteed payment from the housing authority at the FMR rate ensures a steady and potentially higher income stream compared to what might be obtained through open-market renting. The consistent nature of these payments can be particularly attractive given the economic context of the area, where 24.4% of residents are renters and the median income is $70,461. This indicates a moderate reliance on rental housing and suggests that many residents may require assistance to afford housing.
The median home value in ZIP 15637 is $151,059, reflecting the overall affordability of the region. However, the FMR being higher than the market rent presents a unique opportunity for landlords who can leverage the difference to secure a better return on investment. It's important to note that while the FMR provides a higher baseline for rental income, landlords must also consider the administrative aspects of managing Section 8 properties, such as regular inspections and compliance with housing standards.
In conclusion, the positive gap between FMR and market rent in ZIP 15637 positions it as a strategic investment opportunity for those willing to participate in the Section 8 program. Landlords can expect a slight premium over market rates, enhancing their yield potential without the risk associated with collecting rent from individual tenants who may struggle to pay market rates.
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.