Location: Erie, PA | Metro: Erie, PA MSA
| 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 |
U.S. Census Bureau data (2024)
ZIP code 16501, located within the Erie, PA MSA, aligns well as a diversifier in a Section 8 portfolio strategy. The area boasts a significant renter share of 97.9%, indicating a strong demand for rental properties. This high percentage ensures that there will be a steady stream of tenants interested in leasing homes, which is particularly beneficial when considering the median income of $16,394.
The median income figure suggests that many residents rely on government assistance programs such as Section 8 to afford housing. Given that the Fair Market Rent (FMR) for ZIP 16501 in fiscal year 2024 is set at $860, landlords can expect to receive this amount per month for their properties, assuming they qualify for the program. This is notably higher than the market rent of $521, providing a financial cushion that helps mitigate the risks associated with lower-income tenants.
While the appreciation potential is limited due to the lack of data on price-cut shares and days on market (DOM), the primary advantage of including ZIP 16501 in a Section 8 portfolio lies in its stability and reliability as a source of consistent cash flow. The substantial difference between the FMR and market rent ($339 per month) means that landlords can secure rental income above what the local market might offer without the program. Moreover, the high renter share implies that vacancy rates are likely to be low, further enhancing the property's performance as a diversifier within the overall investment mix.
In summary, ZIP 16501 serves best as a diversifier in a Section 8 portfolio. Its high tenant dependency on rental assistance, combined with a reliable income stream and low risk of vacancy, makes it an attractive option for landlords and small-portfolio investors seeking to balance their investments with stable, government-backed rental properties.
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.