Location: Lebanon, PA | Metro: Lebanon, 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 | $980 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,730 | $344,561 | 0.5% | F |
| 4BR | $1,880 | $534,642 | 0.35% | F |
U.S. Census Bureau data (2024)
In ZIP code 17003, the Section 8 economics are defined by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1220. This is the maximum amount that the Housing Choice Voucher program will pay for rent in this area.
The local market rent for a two-bedroom unit in ZIP 17003 is $1,087 according to the latest Census ACS data. This means that the SAFMR is higher than the average market rent, providing a potential buffer for landlords who might be concerned about receiving less than market value.
A landlord should understand that the voucher does not cover the entire rent amount. Tenants are required to contribute a portion of their income towards the rent, typically 30% of their adjusted monthly income. Additionally, there are utility allowances that can vary but generally do not exceed $300 per month for a two-bedroom unit.
To walk through an example, if a tenant's share of the rent is $300 and the utility allowance is $300, the total reimbursement to the landlord would be $620 ($300 tenant contribution + $300 utilities) plus the voucher payment up to $1220. Therefore, the landlord could receive a maximum of $1220 per month for a two-bedroom unit under the Section 8 program.
Given that the local market rent is $1,087, the typical reimbursement gap or surplus for a two-bedroom unit in ZIP 17003 would be a surplus of $133 ($1220 - $1087). This surplus indicates that landlords participating in the Section 8 program in this ZIP code are likely to receive more than the average market rent for a two-bedroom apartment.
However, it is important to note that the actual reimbursement may vary based on the tenant’s income and other factors. Landlords should also consider the administrative aspects of managing a Section 8 property, including the application process and compliance with HUD standards.
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.