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 | $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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $118,285 | 0.93% | C |
| 3BR | $1,350 | $130,370 | 1.04% | B |
| 4BR | $1,520 | $136,354 | 1.11% | B |
| 5BR | $1,763 | $158,506 | 1.11% | B |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 16502, which is located in Erie, Pennsylvania, in Erie County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $940. This figure is crucial because it defines the maximum amount that the Housing Choice Voucher program will pay towards rent.
In comparison, the local market rent for a similar two-bedroom unit, as indicated by ZORI (Zillow Observed Rent Index), stands at $934. This means that the SAFMR slightly exceeds the average market rent, potentially offering a slight surplus to landlords who participate in the program.
A landlord should understand that the actual payment received from a voucher is composed of two parts: the tenant's contribution and the government subsidy. The tenant typically pays 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,800 per month, the tenant would contribute approximately $540 toward the rent of a two-bedroom unit. The remaining amount, up to the SAFMR of $940, would be covered by the government.
In addition to the base rent, there are utility allowances that can vary. For ZIP 16502, the utility allowance for a two-bedroom unit might be around $300, depending on the specific circumstances and the household size. This allowance is designed to help cover the cost of utilities such as electricity, gas, water, and sewer.
To calculate the total reimbursement a landlord can expect, add the tenant's contribution and the utility allowance to the government subsidy. In this case, if the tenant contributes $540 and the utility allowance is $300, the government would cover the rest up to $940. Thus, the landlord could receive a total of $1,240 per month for a two-bedroom unit.
This results in a surplus for the landlord compared to the local market rent of $934. The surplus is calculated by subtracting the market rent from the total reimbursement, which in this scenario amounts to $306 per month. However, it’s important to note that the actual surplus or gap can fluctuate based on the specific tenant's income and any additional costs or fees associated with the voucher program.
In summary, landlords in ZIP 16502 participating in the Section 8 program can expect a reimbursement that covers both the rent and utility costs, with a potential surplus over the local market rent.
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.