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 | $760 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $188,902 | 0.58% | F |
| 3BR | $1,350 | $266,388 | 0.51% | F |
| 4BR | $1,520 | $317,759 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 16421, Harborcreek, PA, reveals an interesting contrast between potential government-subsidized income and market-driven rental yields. Using the Fair Market Rent (FMR) for a 2-bedroom unit set at $870 per month for fiscal year 2024, the annualized rent would be $10,440. Against the median home value of $246,803, this translates to a gross yield of approximately 4.23%. In stark comparison, the market rent for a similar unit stands at $652 per month according to the Census ACS data, resulting in an annual rent of $7,824 and a gross yield of only 3.17%.
The higher gross yield based on the FMR suggests that participating in the Section 8 program could offer a more attractive return on investment compared to the current market rents. However, it's important to consider the actual demand for rental properties in the area. With a renter density of 35.0%, the market for rental units, including those under Section 8, is moderate. The fact that the Days on Market (DOM) figure is listed as N/A indicates either limited data availability or a low turnover rate, which could imply stable occupancy rates but also less flexibility in adjusting rents or tenant types.
In conclusion, while the Section 8 program offers a gross yield of 4.23% versus the market yield of 3.17%, the decision to participate should factor in the local rental market dynamics and the stability of the tenant base. Given the moderate renter density and potentially stable occupancy, the FMR-based scenario provides a more concrete and higher yield, making it a favorable option for landlords and small-portfolio investors looking to maximize returns in ZIP 16421.
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.