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 | $780 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $228,289 | 0.49% | F |
| 3BR | $1,400 | $300,305 | 0.47% | F |
| 4BR | $1,610 | $375,569 | 0.43% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP 16426 in McKean, PA, for FY 2024 is set at $1000. This figure represents the maximum amount that voucher holders can be expected to pay towards their housing costs. In contrast, the market rent, as per the Census ACS, is lower at $853. This indicates that voucher tenants will generally cashflow positively in this area, as the FMR exceeds the typical market rent.
The median home value in ZIP 16426 is $300,299. Using this figure, we can derive a rent-to-price ratio. With a market rent of $853, the annual rent would be approximately $10,236. The rent-to-price ratio, therefore, stands at roughly 3.4%, calculated by dividing the annual rent by the median home value. This low ratio suggests that rental income alone might not cover the cost of ownership unless there are significant premium units available.
The data does not provide specific information on the median Days on Market (DOM) or the percentage of price cuts shared among listings. However, these metrics would be crucial in understanding the rent-versus-buy dynamics in the area. If the DOM is high, it could indicate a challenging market for sellers, which might favor rental investments.
The strongest investor angle in ZIP 16426 is likely cashflow due to the favorable difference between the HUD FMR and the market rent. While the appreciation potential might be limited compared to more dynamic markets, the stability offered by Section 8 vouchers provides a reliable source of income, making it a solid investment choice for those prioritizing consistent returns over rapid capital gains.
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.