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 | $840 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $140,343 | 0.86% | C |
| 3BR | $1,490 | $162,121 | 0.92% | C |
| 4BR | $1,760 | $165,449 | 1.06% | B |
U.S. Census Bureau data (2024)
The ZIP code 16504 in Erie, PA, is primarily characterized by a significant rental population. With 27.8% of the residents being renters, this area has a notable tenant base that could support deep voucher demand. However, the majority of the population (72.2%) still consists of homeowners, indicating that while there is a substantial rental market, it is not overwhelmingly dominant.
The median household income in ZIP 16504 is $56,622. Given the market rent of $1,048, we can calculate that the typical rent consumes approximately 22.4% of the local median income. This is a reasonable percentage, suggesting that most residents can afford the average rent without excessive strain on their finances. For comparison, the Fair Market Rent (FMR) for the area is $1,060 for FY 2024, which is slightly higher than the current market rent but still within a similar range.
A landlord in ZIP 16504 should anticipate tenants who rely on Section 8 housing vouchers. The demand for subsidized housing is likely due to the relatively low median income compared to the cost of living. The fact that the market rent is just under the FMR indicates that there is potential for Section 8 tenants to find properties within their voucher limits. Landlords can expect a mix of tenants, some of whom will be fully self-sufficient, while others will require partial assistance through the voucher program.
To conclude, ZIP 16504 offers a moderate rental market with a clear presence of Section 8 voucher holders. The combination of the rental population and the affordability of market rents relative to the median income suggests that landlords can successfully attract and retain tenants who use housing vouchers. These tenants will typically be families or individuals with lower incomes who need financial assistance to cover their housing costs.
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.