Location: Crawford County, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $142,746 | 0.77% | D |
| 3BR | $1,350 | $193,201 | 0.7% | D |
| 4BR | $1,520 | $208,147 | 0.73% | D |
U.S. Census Bureau data (2024)
In evaluating the investment risk for Section 8 properties in ZIP code 16438, Union City, PA, several critical factors must be considered that could negatively impact the investment. Firstly, tenant turnover poses a significant challenge due to the disparity between the market rent of $744 and the Fair Market Rent (FMR) of $860 for fiscal year 2024. Landlords might face higher tenant churn rates as individuals seek properties that match their voucher amounts, leading to frequent vacancies and associated costs.
Vacancy exposure is another concern, as the Days on Market (DOM) data is not available. This lack of information makes it difficult to predict how long a property might remain vacant, increasing financial risk for landlords. Additionally, the deferred maintenance exposure is noteworthy. With a typical home value of $162,433 and a median income of $65,000, homeowners may struggle to keep up with necessary repairs and improvements, potentially leading to substandard living conditions that do not meet Section 8 standards.
However, these risks are mitigated by the high renter density in the area. The 23.6% renter share indicates a robust demand for rental properties, which often translates into a higher demand for Section 8 vouchers. This high concentration of renters can provide a steady stream of tenants who are eligible for the program, reducing the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP code 16438, Union City, PA.
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.