Let $f:A \to B\ $ be a function.
In Rudin's PMA, at the bottom of page 24 and top of page 25, he states:
If $y \in B, f^{-1}(y)\ $ is the set of all $x \in A\ $ such that $f(x) = y.\ $
This notation could be confused with the function $f^{-1}:B \to A.$
Is Rudin's use of $f^{-1}(y)$ as a set still conventional today?
The notation $f^{-1}(\{y\}) = \{x\in A : f(x) \in \{y\}\}$ or more generally for a subset $C\subseteq A$ $$ f^{-1}(C) = \{x\in A : f(x) \in C\} $$ is pretty standard and known as the preimage.
When it is clear by context $f^{-1}(y)$ would also work but i would always make sure it is clear [as it might lead to confusion with the inverse function $f^{-1}$ which not necessarily exists]