Section 8 Fair Market Rent (FMR) for ZIP 16002 - 2027

Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area

Investment Score for ZIP 16002

N/A

Monthly Rent (2BR)

$1,150

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,470	$312,067	0.47%	F
4BR	$1,590	$415,242	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

15,587

Median Household Income

$90,305

Housing Units

6,574

Renter Percentage

13.4%

Occupancy Rate

96.4%

Renter Occupied

851

A landlord considering investing in ZIP code 16002 for Section 8 properties must follow a structured decision-making process based on financial feasibility, rental market conditions, and demand factors.

Step 1: Financial Feasibility - Does FMR ($920) cover debt service on a $288,522 property?

Yes: The Fair Market Rent (FMR) of $920 for ZIP 16002 in fiscal year 2024 can cover the debt service on a property valued at $288,522. This makes the investment financially viable under Section 8 guidelines.
No: If the FMR does not cover the debt service, the investment is not recommended. A landlord must ensure that the FMR sufficiently covers the costs associated with owning the property.

Step 2: Rental Market Conditions - How does market rent ($843) compare to FMR?

Market Rent Above FMR: If the market rent exceeds the FMR, landlords can potentially earn additional income from non-Section 8 tenants. However, this scenario is not applicable given the market rent is $843, which is below the FMR of $920.
Market Rent Below FMR: With a market rent of $843, landlords will find that the rental income from non-Section 8 tenants will be lower than what the government reimburses for Section 8. This means that landlords can rely on Section 8 reimbursement rates to ensure they receive the FMR of $920 per month.
Market Rent Equal to FMR: If the market rent were equal to the FMR, landlords would face stable but modest returns, as their income from both types of tenants would be the same.

Step 3: Demand Factors - Do 13.4% of residents renting and N/A-day Days on Market indicate sufficient demand?

It Depends: The percentage of renters at 13.4% suggests a moderate demand for rental properties. However, the absence of data on Days on Market (DOM) makes it difficult to assess how quickly properties are being rented out. If the DOM is short, indicating quick rentals, then the demand is strong enough to support Section 8 investments. Conversely, if DOM is long, it may suggest a weaker rental market despite the percentage of renters.

In conclusion, the decision to invest in ZIP 16002 for Section 8 properties hinges on whether the FMR clears the debt service, the relationship between market rent and FMR, and the strength of demand for rental properties. Given the FMR of $920 covers the debt service on a $288,522 property and the market rent is below the FMR, landlords can secure stable income from Section 8 reimbursements. However, the lack of DOM data leaves the final decision dependent on further investigation into the local rental market dynamics.

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.