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 | $810 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $102,628 | 1.14% | B |
| 3BR | $1,450 | $99,023 | 1.46% | A |
| 4BR | $1,710 | $97,637 | 1.75% | A+ |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 16507, located in Erie, Pennsylvania, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent, known as the Zillow Rent Index (ZORI). For fiscal year 2024, the FMR stands at $990, while the ZORI is $1,141. This results in a $151 difference, which translates to approximately a 15.25% gap between the two figures.
Given that the FMR is less than the market rent, landlords and small-portfolio investors should be aware of the financial implications when housing voucher tenants. The cost of renting to voucher holders at rates below the open-market value can reduce profit margins. However, this scenario presents an opportunity for yield through stable occupancy rates and government-backed payments.
Erie, PA has a rental rate of 66.2%, indicating a substantial portion of the population relies on rental housing. The median home value in the area is $102,637, and the median income is $33,361. These economic factors suggest that many residents depend on affordable housing options such as those provided by the Section 8 program. Landlords must weigh the benefits of guaranteed rental income against the potential for lower overall revenue compared to market rates.
To summarize, the FMR being lower than the ZORI means that landlords accepting Section 8 vouchers will rent at a discount relative to the market. Despite this, the program's stability and the high demand for affordable housing in Erie can still make it a viable investment strategy, especially considering the local economic conditions.
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.