Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 15670 in the Pittsburgh, PA HUD Metro FMR Area for fiscal year 2024 is set at $950. This figure represents the maximum amount that voucher holders can pay towards rent. In comparison, the market rent as reported by the Census American Community Survey (ACS) stands at $846, indicating that properties rented at the HUD FMR will generally provide positive cash flow for landlords and small-portfolio investors.
To further analyze the market dynamics, the median home value in ZIP 15670 is $203,204. Using this data point, we can calculate the rent-to-price ratio. At the HUD FMR of $950, the annual rent would be $11,400. Dividing this by the median home value gives us a rent-to-price ratio of approximately 5.6%. This ratio suggests that rental income alone can cover a significant portion of the mortgage payment on a property valued at the median, assuming typical financing terms. However, it's important to note that this calculation does not account for other costs such as maintenance, property taxes, and insurance.
The data does not provide specific figures for the median days on market (DOM) or the percentage of homes that experience price cuts. These metrics are typically indicative of the local housing market's health and can influence the decision between buying and renting. Given the lack of these figures, we must rely on the current HUD FMR and market rent data to guide our analysis.
In conclusion, the positive cash flow generated by renting at the HUD FMR makes this area particularly attractive for investors focused on stability and consistent returns. The strong cash flow position ensures that even with potential increases in operating costs, investors can maintain profitability and avoid the need for premium units to achieve positive cash flow.
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.