Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $930 for ZIP 16030 in fiscal year 2024 will sufficiently cover the mortgage on a typical home. The median home value in ZIP 16030 is currently not specified in the available data, which makes it challenging to provide an exact comparison. However, given that the average rental listing price in the area is approximately $680, it suggests that the FMR could be a reasonable indicator for covering mortgage expenses, assuming the home value aligns with regional averages.
The same investor could also doubt if there's sufficient renter demand at 21.6%. According to recent data, there are 55 single-family homes listed for rent in ZIP 16030, indicating a moderate level of demand. This percentage reflects the proportion of the population renting rather than owning homes, which is a standard metric used to gauge rental market strength. While 21.6% may seem low compared to urban centers, it represents a stable rental market in this ZIP code.
Another concern might be whether government housing vouchers will keep pace with market rents of $680. The FMR of $930 for the area is higher than the average market rent, suggesting that vouchers could indeed help maintain occupancy rates. However, it's important to note that voucher amounts can vary based on household income and other factors, so they might not always cover the full market rent. Investors should consider diversifying their tenant mix to include both voucher recipients and market-rate renters to mitigate this risk.
In summary, while the data does not fully resolve every concern, it provides a solid foundation for understanding the rental market dynamics in ZIP 16030. The FMR of $930 offers a benchmark for covering mortgage costs, the rental demand at 21.6% is stable, and vouchers can support maintaining occupancy despite fluctuating market rents.
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.