Variations of dielectric and piezoelectric properties and associated phase transformation of <001> -oriented rhombohedral 0.92Pb (Zn$sub$1/3/Nb$sub$2/3/)O$_3$-0.08PbTiO$_3$ single crystals were investigated. The longitudinal strain level was found to abruptly increase at 15 kV/cm, corresponding to that where an induced phase appears within a multidomain matrix. Drastic decreases in the dielectric constant, transverse coupling, and transverse piezoelectric coefficient associated with the E-field induced phase were the result of increased crystal anisotropy in PZN-PT crystals. By contrast, the thickness coupling increased from 53 % at 0 kV/cm to 64 % at 45 kV/cm, also associated with this phase transition under the E-field. The measured dielectric and piezflelectric properties found for the induced phase state were nearly identical to those of <001> poled tetragonal (1-x)PZN-xPT (x>0.1) crystals. Based on these results, it is evident that the symmetry of induced phase is tetragonal.