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 | $960 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $175,295 | 0.71% | D |
| 3BR | $1,580 | $247,921 | 0.64% | D |
| 4BR | $1,720 | $320,820 | 0.54% | F |
| 5BR | $1,995 | $301,696 | 0.66% | D |
U.S. Census Bureau data (2024)
If a landlord is considering investing in ZIP code 16001 (Butler, PA) for Section 8 properties, they should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1080 cover the debt service on a property valued at $211,243?
No. The FMR of $1080 must be compared against the expected debt service costs, which typically include mortgage payments, property taxes, insurance, and maintenance. For a property valued at $211,243, assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly principal and interest payment alone would be approximately $1125. This does not include other expenses such as property taxes, insurance, and maintenance, which would further increase the total debt service cost. Therefore, the FMR of $1080 is insufficient to cover the debt service on a property of that value.
2) Is the market rent ($909 ZORI) above, at, or below the FMR?
The ZORI (Zillow's Estimated Rent Index) of $909 is below the FMR of $1080. This suggests that the rental market in Butler, PA, is less expensive than what the government deems as fair market rent for Section 8 vouchers. Landlords who are considering using their properties for Section 8 tenants might find that the FMR provides a higher rental income compared to the market rate.
3) Are 31.6% of residents renters, combined with a 27-day Days on Market (DOM), sufficient to meet demand?
Yes. With 31.6% of the population being renters and a relatively low DOM of 27 days, there is evidence of a healthy rental market in Butler, PA. A DOM of 27 days indicates that rental properties are typically occupied within a month of becoming available, suggesting strong demand. Additionally, the percentage of renters is substantial, indicating a significant portion of the population relies on rental housing. This combination supports the idea that there is enough demand for rental properties, including those intended for Section 8 tenants.
Based on these factors, if the landlord is willing to accept the lower returns due to the FMR not covering the full debt service, the answer is yes, they should consider buying in ZIP 16001 for Section 8. The rental market is favorable, with strong demand and market rents below the FMR, which can provide a marginally better income compared to market rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.