Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
U.S. Census Bureau data (2024)
The median income in ZIP code 16024 stands at $72,500, which provides a solid baseline for evaluating rental affordability. At the market rate of $1,094, a household would be spending approximately 17.8% of their annual income on rent alone, assuming they pay the median rent each month. This percentage is generally considered manageable, though it does leave little room for other significant expenses such as utilities, food, and healthcare.
However, the situation becomes more challenging when considering the Fair Market Rent (FMR) standard set at $1,390 for ZIP 16024 in fiscal year 2024. At this rate, households would need to allocate nearly 25% of their annual income toward rent, which significantly reduces disposable income and could lead to financial strain.
The affordability gap between the market rate and the FMR is substantial, with the FMR being $296 higher per month. Given that only 16.7% of the 210-person population are renters, competition among landlords is likely to be fierce for those few tenants who qualify for Section 8 vouchers. Landlords must weigh the benefits of receiving higher payments through vouchers against the potential drawbacks of increased administrative requirements and the possibility of having fewer tenant options.
For landlords and small-portfolio investors, the decision to accept Section 8 vouchers versus relying on cash-paying tenants should be carefully considered. While the higher FMR payment can help cover costs and provide a better return on investment, it also means catering to a smaller pool of tenants who meet the voucher criteria. On the other hand, cash-paying tenants might offer greater flexibility and potentially lower vacancy rates, but they will pay less, reflecting the actual market conditions.
The takeaway is clear: landlords in ZIP 16024 must balance the financial advantages of Section 8 vouchers with the realities of a competitive rental market where many households struggle to afford even the median rent. A strategic approach might involve diversifying the tenant mix to include both voucher and cash-paying tenants, thereby mitigating risk while maximizing returns.
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.