Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 15692, Westmoreland City, PA, centers on the gap between the Fair Market Rent (FMR) of $1080 and the actual market rent of $999 per month. This represents a difference of $81 per month, or approximately 7.5%. The FMR is higher than the market rent, which makes the area a yield play for landlords and small-portfolio investors.
Given the context of 11.1% renters, a median home value of $170,093, and a median income of $71,574, voucher tenants can provide a steady and reliable stream of rental income. Despite the elevated poverty rate of 21.9% and higher unemployment rate of 8.7%, the discrepancy between FMR and market rent suggests that landlords can achieve better returns compared to the open market.
The durable renter share of 11.1% is not inherently problematic, but when combined with below-average income levels, it necessitates careful tenant screening and management practices. Landlords should be prepared to manage the risks associated with this market, including potential difficulties in rent collection.
In summary, the gap between FMR and market rent in ZIP 15692 presents an opportunity for investors to capitalize on higher yields. However, this should be part of a diversified portfolio and not the sole focus of investment activity.
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.