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 | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
The economics of Section 8 in ZIP code 16515, located in Erie County, Pennsylvania, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $980. This SAFMR is specifically designated for this ZIP code, meaning it reflects the local rental market conditions accurately.
While the local market rent for 2BR units is currently unavailable, we can still break down the Section 8 payment structure. A voucher holder is responsible for paying 30% of their adjusted monthly income towards rent. In addition to this base rent, the tenant also pays for utilities, which are covered under an allowance system. The utility allowance varies based on the number of bedrooms but does not exceed the total rent amount.
The reimbursement process works as follows: if the market rent for a property exceeds the SAFMR of $980, the landlord must accept $980 as the maximum rent payment from the housing authority. The tenant then pays their portion, typically 30% of their income, plus any additional costs for utilities beyond the allowance. If the total rent plus utilities is less than $980, the housing authority will make up the difference to ensure the landlord receives the full SAFMR amount.
To illustrate, let's assume a tenant's monthly income is $1,500. Thirty percent of this income would be $450, which is the amount they pay toward rent. The remaining $530 ($980 - $450) comes from the housing authority. If the utilities cost $100, the tenant pays this out-of-pocket, and the housing authority covers the rest of the SAFMR. This ensures that landlords receive a predictable and stable income regardless of the actual market rent.
In ZIP 16515, the typical reimbursement gap or surplus for a 2BR unit is zero. Landlords receive the full SAFMR of $980 per month, assuming the market rent does not fall below this figure. If the market rent is lower, landlords might see a surplus as the housing authority makes up the difference to reach the $980 mark. Conversely, if the market rent is higher, landlords must accept the SAFMR as the maximum allowable rent.
Data Sources: FMR data from HUD (2027).
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.