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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $148,268 | 0.74% | D |
| 3BR | $1,350 | $174,309 | 0.77% | D |
| 4BR | $1,520 | $185,068 | 0.82% | C |
| 5BR | $1,763 | $228,143 | 0.77% | D |
U.S. Census Bureau data (2024)
Erie, PA's ZIP code 16508 is a moderately sized residential area with a total population of 14,958 residents. The neighborhood has a significant portion of renters, accounting for 31.4% of the total population, which indicates a steady demand for rental properties. The median household income in the area is $56,391, suggesting a middle-class community where many families could potentially benefit from housing assistance programs. The median home value stands at $162,113, reflecting an affordable living environment that is accessible to a wide range of buyers and renters.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP code 16508 for fiscal year 2024 is set at $930. This figure represents the government's benchmark for what it considers a reasonable rent for the area under the Section 8 program. In contrast, the market rent, as measured by the Zillow Observed Rent Index (ZORI), is $1,025, indicating a slight premium over the FMR. This gap between the FMR and the market rent suggests opportunities for landlords who can manage their properties efficiently to capture a higher rent while still providing affordable housing options to eligible tenants.
The question of whether ZIP 16508 suits a hands-off voucher operator or a hands-on value-add buyer hinges on the level of engagement a landlord is willing to undertake. For those preferring a hands-off approach, the stability of the Section 8 program offers consistent rental income, though at a rate slightly below the market average. Conversely, for hands-on operators looking to enhance property values through improvements and strategic management, the potential exists to increase rents closer to the market rate while still serving tenants under the voucher program. Given the demographic profile and economic indicators, both strategies can be viable depending on the landlord's objectives and capabilities.
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.