Location: Pittsburgh, PA | Metro: Pittsburgh, PA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 16052 within the Pittsburgh, PA HUD Metro FMR area reveals several key points for potential real-estate investments, particularly for those interested in Section 8 housing. First, let's examine if the rent math works. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1130. However, the Census ACS indicates that the market rent is significantly lower at $878. This suggests that while Section 8 vouchers can cover up to $1130, landlords will need to ensure their properties meet the necessary standards to qualify for this higher rental rate.
Moving on to the affordability of property acquisition, the median home value in ZIP 16052 stands at $269,762. Unfortunately, the data does not provide the average days on market (DOM) or the percentage of homes sold at a price cut. Despite these missing details, the median home value gives a clear indication of the investment required to enter this market. For small-portfolio investors, this figure may represent a significant barrier, depending on their capital reserves.
Last, we assess the tenant demand. The population of ZIP 16052 is 2,215, with a renter share of 8.5%. This relatively low percentage of renters might indicate a smaller pool of potential tenants. However, it also means that there could be fewer competing rental properties, which might help stabilize the rental market.
In conclusion, the rent math leans towards being favorable for Section 8 landlords due to the discrepancy between the FMR and market rent. Acquisition of properties in ZIP 16052 is costly, with the median home value exceeding $269,000, which may deter some investors. Tenant demand is limited, given the small percentage of renters in the area. Overall, while the financials for renting under Section 8 appear to work, the high entry cost and limited demand suggest that this investment opportunity is best suited for those who can afford substantial initial outlays and are willing to manage a niche market.
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.