Location: Lawrence County, 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 | $940 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $359,869 | 0.43% | F |
| 4BR | $1,680 | $478,699 | 0.35% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 16037 reveals a favorable cashflow opportunity due to the disparity between the HUD Fair Market Rent (FMR) and the actual market rents. The HUD FMR for ZIP 16037 is set at $1440 for the fiscal year 2024. In contrast, the Census ACS data indicates that the average market rent is $1,005. This means that landlords who participate in the Section 8 program can expect to cashflow significantly above the market rate, which is a strong positive for investors looking to generate steady income.
To further understand the investment potential, consider the median home value in ZIP 16037, which stands at $373,366. Using the HUD FMR of $1440, we can calculate the rent-to-price ratio, which comes out to approximately 0.49%. This low ratio suggests that rental properties in this area offer a good deal relative to the cost of buying a home, making them an attractive option for investors focused on generating rental income rather than immediate equity gains.
The dynamics of days on market (DOM) and the percentage of price cuts are not applicable in this scenario since these metrics pertain to the buying market rather than the rental market. However, it's worth noting that the stability of rental income in ZIP 16037, coupled with the significant cashflow advantage offered by the Section 8 program, makes it an excellent choice for small-portfolio investors seeking consistent returns.
The strongest angle for investors in ZIP 16037 is undoubtedly the cashflow potential, given the substantial difference between the HUD FMR and the market rent. This allows landlords to maintain profitability while providing affordable housing options to tenants.
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.