Section 8 Fair Market Rent (FMR) for ZIP 16503 - 2027

Location: Erie, PA | Metro: Erie, PA MSA

Investment Score for ZIP 16503

A+

Monthly Rent (2BR)

$1,100

Median Price (2BR)

$61,446

1% Rule

1.79%

Annual Yield

21.48%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,100	$61,446	1.79%	A+
3BR	$1,350	$69,792	1.93%	A+
4BR	$1,520	$74,473	2.04%	A+
5BR	$1,763	$81,116	2.17%	A+

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

15,753

Median Household Income

$32,340

Housing Units

6,591

Renter Percentage

62.0%

Occupancy Rate

91.5%

Renter Occupied

3,742

Erie, Pennsylvania, specifically ZIP code 16503, is a residential area with a mix of housing types catering to various demographics. The local real estate market reflects a balance between rental properties and homeownership, with particular insights into the financial viability of investment opportunities.

The Fair Market Rent (FMR) for ZIP 16503 is set at $900 for fiscal year 2024, indicating the government's benchmark for what is considered a reasonable rent price for a two-bedroom apartment.
According to Census ACS data, the average market rent for a similar unit in ZIP 16503 stands at $869, slightly below the FMR but still offering a competitive rental environment.
The median home value in this area is $69,105, which is significantly lower than the national average, making it an attractive option for first-time homebuyers and investors looking for affordable entry points.
Renters make up 62.0% of the population in ZIP 16503, suggesting a strong demand for rental properties over homeownership.
The median household income in the area is $32,340, which is important for understanding the economic context of potential tenants and buyers.

Investors should note that while the median home value is low, the significant renter share and the close alignment between market rents and FMR suggest a stable rental market. The lower median income highlights the importance of pricing strategies that align with the affordability of the local residents. Overall, ZIP 16503 presents a solid opportunity for those interested in rental properties, especially considering the relatively high renter share and the established rental rates.

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.