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 | $1,000 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $227,331 | 0.63% | D |
| 3BR | $1,770 | $289,970 | 0.61% | D |
| 4BR | $2,090 | $319,338 | 0.65% | D |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 16442, Wattsburg, PA, suggests a balanced market with moderate pricing power for landlords and small-portfolio investors over the next 12-24 months. The median home value stands at $262,602, indicating a stable residential market where neither extreme inflation nor deflation is present. This stability is further underscored by the fact that there is currently no percentage of listings being reduced, which implies that sellers are confident in their asking prices and buyers are willing to meet them.
The median days on market (DOM) being listed as N/A could be due to a low volume of recent sales activity, but it does not necessarily suggest a sluggish market. In a balanced market, homes typically sell within a reasonable timeframe without the need for significant price adjustments.
On the rental side, the Federal Market Rent (FMR) for ZIP 16442 in fiscal year 2024 is set at $880, while the Census American Community Survey (ACS) reports a market rate of $1,069. This gap between subsidized and market rents signals an opportunity for landlords who can attract tenants willing to pay above the subsidized rate. However, it also indicates a segment of the rental market that is heavily reliant on government subsidies, which could influence tenant selection and rent collection strategies.
For long-term investors, the setup implies a cautious approach to appreciation expectations. Given the median home value and the current balance between supply and demand, there is limited evidence to support robust appreciation over the next two years. Instead, the focus should be on maintaining steady cash flows through rental income, with appreciation serving as a secondary benefit rather than a primary investment thesis.
Investors should consider the following:
In conclusion, the data points to a market where pricing power is tempered by stable conditions and a mixed rental environment. Long-term investors should prioritize property management and rental yield strategies over aggressive growth expectations.
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.