Location: Lebanon, PA | Metro: Harrisburg-Carlisle, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,250 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 17033 (Hershey, PA) for Section 8 investment, follow this decision tree:
1) Does FMR $1370 (zip FY 2024) clear debt service on a $404,266 property?
No. The Fair Market Rent (FMR) of $1370 does not sufficiently cover the debt service on a property valued at $404,266. To clear debt service, the rental income must meet or exceed the monthly mortgage payment, including principal, interest, taxes, and insurance. Given typical financing terms, the FMR would likely fall short of covering these expenses.
It depends. This scenario applies if you're considering alternative financing options that significantly lower your debt service requirements. However, such arrangements are uncommon and require detailed financial analysis.
Yes. This branch is unlikely unless you have an extremely low-cost acquisition or can secure a very favorable loan agreement. For most properties in this price range, the FMR will not clear standard debt service.
2) Is market rent $1,525 (ZORI) above, at, or below FMR?
Above. The Zillow Observed Rent Index (ZORI) of $1525 is higher than the FMR of $1370. This indicates that the market rent exceeds the maximum allowable rent for Section 8 tenants, which could limit the pool of potential tenants eligible for the program.
At or Below. This branch does not apply as the ZORI is above the FMR. However, if the ZORI were at or below the FMR, it would suggest a better alignment between market conditions and Section 8 rent limits.
3) Are 49.2% renters + N/A-day DOM enough demand?
No. With 49.2% of the population being renters and an unknown average number of days on the market (DOM), there is insufficient evidence to support strong demand for Section 8 properties. A high percentage of renters alone does not guarantee demand for affordable housing units. Additionally, the lack of DOM data makes it difficult to assess how quickly properties are being rented, which is crucial for understanding the local rental market's health.
It depends. While the 49.2% renter rate suggests a significant portion of the population might be interested in renting, the absence of DOM data complicates the assessment. Landlords should seek additional market research to understand the speed at which properties are leased and the overall demand for affordable housing in Hershey, PA.
Yes. This branch is unlikely given the current data. Strong demand would typically require both a high renter rate and a low DOM, indicating quick leasing times. Since the DOM is not available, this cannot be confirmed.
Based on the provided data, purchasing in ZIP 17033 for Section 8 investment is not advisable due to the inability of FMR to cover debt service and the lack of sufficient demand indicators. Additional research into financing options and local rental market trends is recommended before making any investment decisions.
Data Sources: FMR data from HUD (2027). 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.