Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 15678, Rillton, PA, is anchored by the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1110. However, the market rent data is not available, which makes it challenging to directly compare the two figures.
In ZIP 15678, 17.9% of the population are renters, indicating a significant but not overwhelming demand for rental properties. The median home value in this area is $180,532, while the median household income is $66,389. This suggests that the area has a moderate economic profile where a substantial portion of residents may rely on assistance programs like Section 8 to afford housing.
If the FMR exceeds the market rent, landlords can benefit from accepting Section 8 vouchers because they ensure a steady stream of income. Voucher tenants provide a reliable source of rental payments, which can be particularly attractive given the moderate income levels in the area. In such a scenario, the gap would represent a yield play, allowing landlords to maintain occupancy and receive government-subsidized rents that may be higher than what they could get from non-voucher tenants.
Conversely, if the FMR is lower than the market rent, landlords might face a different set of challenges. Accepting Section 8 tenants means renting below the open-market rate, which could reduce potential rental income. This scenario would mean landlords must consider the trade-off between the guaranteed payment from the voucher program and the possibility of achieving higher rents through market-rate tenants.
To accurately assess the impact of this gap, it's essential to obtain the current market rent data for ZIP 15678. Once available, the percentage difference between the FMR and market rent can be calculated to provide a clearer picture of the financial implications for landlords and small-portfolio investors.
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.