Location: Erie, PA | Metro: Erie, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 16430 in Erie, PA MSA reveals several key points for potential real estate investments targeting Section 8 tenants.
The first question concerns whether the rent math works. The Fair Market Rent (FMR) for ZIP 16430 in fiscal year 2024 is set at $980. However, due to limited data, the comparison with the market rent remains inconclusive. This uncertainty should be considered when evaluating the profitability of renting to non-Section 8 tenants.
Moving on to the affordability of acquisitions, the median home value in ZIP 16430 stands at $195,228. With no available data on days on market (DOM) or the percentage of homes that have been discounted, it's difficult to gauge how competitive the market is for buying properties. Nonetheless, the median home value suggests that acquisitions can be made at a reasonable cost, especially considering the FMR for rental income.
The third question addresses tenant demand. ZIP 16430 has a population of 148, with 15.7% being renters. Given the small population size, the number of potential Section 8 tenants is relatively low, which could impact the pool of interested applicants. However, the percentage of renters indicates a willingness among residents to lease properties rather than own them.
Verdict: Investing in ZIP 16430 for Section 8 tenants is feasible but faces challenges. The established FMR of $980 provides a clear rental income benchmark, though the lack of market rent data introduces uncertainty. The median home value of $195,228 makes property acquisition affordable, but the limited data on DOM and price cuts means that competition and negotiation dynamics remain unclear. Lastly, while the small population size restricts the overall number of potential tenants, the 15.7% renter share suggests interest in leasing. Landlords and small-portfolio investors must weigh these factors carefully, particularly focusing on the local demand for rental properties and the potential for securing long-term, stable rental income through Section 8 tenancy.
Data Sources: FMR data from HUD (2027). 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.