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)
Erie, PA's ZIP code 16505 is a residential area with a moderate population of 15,270 residents. Approximately 29.3% of the residents are renters, indicating a significant portion of the community relies on rental housing. The median household income in this area stands at $72,938, which suggests a middle-class neighborhood where families can afford reasonable living expenses. The median home value in ZIP 16505 is $251,120, reflecting a stable and affordable real estate market.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 16505 for fiscal year 2024 is set at $980. This figure is notably higher than the reported market rent of $881 based on Census ACS data. The discrepancy between the FMR and the actual market rent indicates a potential opportunity for landlords and investors who can offer quality rentals at rates closer to the FMR, thus attracting tenants who might be receiving government assistance such as Section 8 vouchers.
Given these economic conditions, ZIP 16505 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the relatively low market rent compared to the FMR provides a cushion for those accepting Section 8 vouchers, ensuring steady and reliable income. On the other hand, hands-on value-add buyers could find opportunities to improve properties and charge closer to the FMR, potentially increasing their returns while still serving the needs of lower-income renters. However, it's important to note that the success of either strategy will depend on the ability to maintain properties at standards required for Section 8 participation and the willingness of renters to move into improved units.
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.