Location: Erie, PA | Metro: Erie, PA MSA
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 | $1,090 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $263,122 | 0.6% | F |
| 3BR | $1,950 | $310,743 | 0.63% | D |
| 4BR | $2,300 | $498,076 | 0.46% | F |
| 5BR | $2,668 | $584,426 | 0.46% | F |
U.S. Census Bureau data (2024)
ZIP 16415, located in Fairview, PA within the Erie, PA MSA metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 is set at $1,190, which is significantly lower than the market rent of $1,540. This creates a spread of $350 per unit, enhancing the cash flow for landlords participating in the program.
The median home value in ZIP 16415 is $372,568. Despite this, the FMR remains below the market rate, making it attractive for those looking to stabilize their rental income. The lower FMR ensures that landlords can rely on consistent payments from the government, reducing the risk associated with non-payment or late payment from tenants.
While appreciation plays typically involve properties with low price-cut shares and short days on market (DOM), these metrics are not applicable for ZIP 16415. Therefore, focusing on appreciation for this area is not recommended. Instead, landlords should leverage the strong cash flow generated by the significant spread between the FMR and market rent.
ZIP 16415 also offers some diversification benefits, with a renter share of 9.8%. However, this aspect is secondary to its role as a cash-flow anchor. The median income of $108,214 suggests a stable economic environment, but the primary focus should be on the guaranteed rental income provided by the Section 8 program.
In conclusion, ZIP 16415 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to the substantial difference between the FMR and market rent. This ensures steady and predictable income, which is crucial for landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.