The issue isn't the rim size, it's the width of the rear fender. I had a metzler 150 and there was more than enough clearance. I would imagine you could stuff a metzler 160 uner there. Metzlers run a tad bit narrower than the dunlops...
i have heard of people putting a 160 on a 18in rim with out mods. I am not sure what the widest tire they make for a 16in wheel, but a 160 should be fine.