What is the cap rate in Pittsburgh, PA?

The median cap rate in Pittsburgh, PA is 4.9%. This is based on HUD Fair Market Rents and current home values.

Is Pittsburgh a good place to buy rental property?

Pittsburgh has a cap rate of 4.9% and estimated cash flow of -$284/month. Returns are moderate — consider the appreciation potential. Median home price is $237,514 with average 3BR rent of $1,620/month.

What is the average rent in Pittsburgh, PA?

The HUD Fair Market Rent for a 3-bedroom in Pittsburgh, PA is $1,620/month. This represents the estimated rent for standard-quality housing in the area.

Pittsburgh, PA — Rental Investment Analysis

🟡MODERATE— average returns

Data: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.

Investment Summary

As of 2026, rental properties in Pittsburgh, PA yield a 4.9% cap rate. Median home price is $237,514 with 3-bedroom rents at $1,620/month.

Pittsburgh is a moderate market — workable but not exceptional for cash flow. At $237,514 median home price, Pittsburgh is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,620/month, the 4.9% cap rate tells the story. Cash flow is deeply negative at -$284/month with standard assumptions. This market requires appreciation to justify the investment.

At 0.67% on the 1% rule, rents are low relative to purchase prices. You'd need a significant discount from asking price to make the numbers work. DSCR of 0.77 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.

Bottom line: Consider Pittsburgh only if you believe in long-term appreciation. The numbers don't support cash flow at today's prices and rates.

Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.

Cap Rate

4.9%

Below average

Monthly Cash Flow

-$284

After all expenses

Price-to-Rent

12.4

Investor-friendly

DSCR

0.77

Fails

Key Metrics

Median Home Price: $237,514
Average Rent (3BR): $1,620/mo
Price-to-Rent Ratio: 12.4(good)
1% Rule: 0.67%(fails — need 1%+)
Cash-on-Cash Return: -6.5%
Vacancy Rate: 8.0%

Market Strength

Unemployment Rate: 4.2%(-0.1% vs national)
Rent Growth (YoY): +2.9%(national avg)
Population Growth: -0.5% YoY

Assumptions Used

20% down, 6.52% rate, 30yr, 8% vacancy, 10% maintenance

Customize these numbers →

Property Tax Rate

1.43%

of assessed value (PA avg)

Median Income

$67,587

household (PA avg)

Rent-to-Income

28.8%

Affordable

Section 8 Max Rent

$1,620/mo

3BR voucher payment

PA Investor Climate

Landlord Friendly

6/10

State Income Tax

Has state tax

Property Tax

1.43% effective

Population Trend

-0.5% (3yr)

Population Movement (Tax Year 2021→2022)

Net Migration

-2,923 households

SHRINKING

Total Inflow

524,157

households moved in

Avg Income (New Residents)

$102,831

per household

Where they're coming from:

1.Allegheny Non-migrants, PA512,687 households · avg $103,360

2.Butler, PA1,121 households · avg $83,571

3.Beaver, PA886 households · avg $56,589

4.Erie, PA289 households · avg $45,602

5.Los Angeles, CA260 households · avg $98,454

Where residents are leaving to:

1.Allegheny Non-migrants, PA512,687 households

2.Butler, PA1,895 households

3.Beaver, PA1,296 households

4.Santa Clara, CA392 households

5.King, WA346 households

Net outflow may indicate weakening demand — but can mean lower prices and higher cap rates.

Best Zip Codes in Pittsburgh for Investors

15204

Cap Rate: 9.9%Cash Flow: +$378/mo$127,652

15208

Cap Rate: 9.1%Cash Flow: +$347/mo$156,533

15207

Cap Rate: 8.8%Cash Flow: +$282/mo$143,033

All Zip Codes in Pittsburgh

Zip	Cap Rate	Cash Flow	Home Price	Rent (3BR)	DSCR
15204	9.9%	+$378	$127,652	$1,510/mo	1.56
15208	9.1%	+$347	$156,533	$1,710/mo	1.42
15207	8.8%	+$282	$143,033	$1,520/mo	1.37
15219	8.7%	+$295	$153,375	$1,620/mo	1.36
15221	8.6%	+$266	$147,851	$1,540/mo	1.34
15203	7.6%	+$232	$228,384	$2,160/mo	1.19
15214	7.1%	+$102	$168,624	$1,510/mo	1.11
15235	7.0%	+$96	$173,125	$1,540/mo	1.10
15212	6.6%	+$25	$173,875	$1,460/mo	1.03
15225	6.5%	+$18	$154,316	$1,290/mo	1.02
15211	6.1%	-$50	$215,462	$1,710/mo	0.96
15226	5.9%	-$75	$202,110	$1,570/mo	0.93
15216	5.8%	-$115	$216,553	$1,640/mo	0.90
15220	5.6%	-$157	$237,514	$1,760/mo	0.88
15234	5.3%	-$186	$212,621	$1,520/mo	0.84
15213	5.3%	-$249	$268,171	$1,900/mo	0.83
15218	5.0%	-$258	$215,945	$1,460/mo	0.78
15224	4.9%	-$334	$268,556	$1,800/mo	0.77
15202	4.9%	-$284	$225,823	$1,510/mo	0.76
15239	4.7%	-$350	$252,678	$1,650/mo	0.74
15229	4.6%	-$369	$245,730	$1,570/mo	0.72
15206	4.5%	-$464	$292,806	$1,840/mo	0.70
15201	4.5%	-$480	$298,809	$1,870/mo	0.70
15236	4.3%	-$437	$253,474	$1,550/mo	0.68
15209	4.3%	-$420	$236,369	$1,430/mo	0.67
15233	4.0%	-$498	$247,947	$1,430/mo	0.62
15243	3.8%	-$749	$341,170	$1,890/mo	0.59
15237	3.1%	-$974	$361,085	$1,780/mo	0.49
15222	3.0%	-$1,311	$463,464	$2,210/mo	0.47
15232	2.7%	-$1,513	$493,468	$2,210/mo	0.42
15215	2.5%	-$1,108	$346,945	$1,500/mo	0.40
15241	2.4%	-$1,613	$483,938	$2,010/mo	0.37
15217	2.2%	-$1,644	$469,039	$1,850/mo	0.34
15228	2.1%	-$1,489	$420,546	$1,640/mo	0.33
15238	1.0%	-$2,593	$573,357	$1,550/mo	0.15