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 | $1,150 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,900 | $303,813 | 0.63% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 16023 stands at $86,042, while the market rate for rent is $1,104 according to the Census ACS data. This means that a typical household would spend approximately 14.5% of their annual income on rent at the market rate. However, the Fair Market Rent (FMR) set by the government for voucher payments in ZIP 16023 for fiscal year 2024 is $1,180, which is slightly higher than the market rate.
The discrepancy between the market rate and the FMR highlights an affordability gap for renters. At the FMR level, a household would be spending around 15.7% of their income on rent, which is still manageable but closer to the upper limit of what is considered affordable. The fact that only 25.4% of the 4,082 population are renters suggests a relatively low demand for rental properties compared to areas with higher percentages of renters.
This low percentage of renters could indicate a competitive landscape for landlords, especially when it comes to attracting tenants who rely on vouchers. Voucher holders are limited by the amount they can pay, which is based on the FMR. Therefore, landlords must decide whether to accept vouchers at the lower payment rates or focus on cash-paying tenants who might be willing to pay the market rate or even more.
The takeaway for landlords considering their strategy in ZIP 16023 is clear: there is a balance to be struck between accepting vouchers at the FMR of $1,180 and targeting cash-paying tenants who can afford the market rate of $1,104 or potentially offer more. Given the median income levels and the slight premium of FMR over market rate, landlords might find that cash-paying tenants provide a better financial return. However, the availability of such tenants in a low-renter market could be limited, necessitating a flexible approach to accommodate both voucher and cash-paying renters.
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.