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 | $830 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,500 |
| 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 | $1,210 | $147,694 | 0.82% | C |
| 3BR | $1,500 | $216,151 | 0.69% | D |
| 4BR | $1,710 | $257,138 | 0.67% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 16511, located in Erie, Pennsylvania, stands at $74,102. This figure places significant constraints on what a typical household can afford for housing. The market rate for rent, according to Census ACS data, is $904 per month. However, even at this price point, many renters face challenges in covering their housing costs.
To put this into perspective, the Federal Market Rent (FMR) for ZIP code 16511 in fiscal year 2024 is set at $1,100. This means that the government's standard for voucher payments exceeds the current market rate by approximately $196 per month. While the market rate might be lower, it still represents a substantial portion of a household's budget, especially considering other expenses such as utilities, groceries, and healthcare.
With 25.6% of the population renting and a total population of 11,776, the competition among landlords is notable. The affordability gap between median income and both market rate and FMR highlights the financial strain on renters. For landlords, this means that relying solely on market rates could limit the pool of potential tenants who can afford to pay without assistance.
The takeaway for landlords is clear: accepting Section 8 vouchers can provide a steady stream of rental income and access to a larger pool of tenants. Vouchers ensure that rent is paid promptly and at a rate that is more aligned with the government's assessment of fair market value. In contrast, focusing exclusively on cash-paying tenants might lead to vacancies if the market rate remains a barrier to entry for many households in the area.
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.