Location: Harrisburg-Carlisle, PA | Metro: Harrisburg-Carlisle, 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 | $940 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,660 | $303,840 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 17040 might raise several concerns regarding the feasibility of investing in properties through the Section 8 program. Let's address these points head-on using available data.
Objection 1: Will the Fair Market Rent (FMR) of $1110 for ZIP 17040 cover the mortgage on a $294,628 home?
The FMR is an important metric but does not directly correlate with the mortgage payment on a property. The FMR represents the maximum amount that the government will pay for rental housing under the Section 8 program. To determine if this covers the mortgage, we need to consider the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage at a current average interest rate of around 6%, the monthly mortgage payment on a $294,628 home would be approximately $1,760. This means that the FMR of $1110 would not cover the mortgage payment alone. However, it is worth noting that many landlords can also charge a portion of the tenant's income towards the rent, which helps bridge the gap between the FMR and the actual mortgage payment.
Objection 2: Is there enough renter demand at 18.6%?
The percentage of renter-occupied housing units in ZIP 17040 stands at 18.6%. This figure is relatively low compared to national averages, which could indicate less demand for rental properties. However, it's crucial to understand that the percentage alone does not provide a complete picture. We must consider the total number of households in the area and the specific needs of the population. If the area has a significant portion of low-income residents who rely on assistance programs like Section 8, the demand for affordable rentals could still be substantial despite the lower percentage.
Objection 3: Will vouchers keep pace with market rents of $997?
The market rent of $997 is slightly below the FMR of $1110, suggesting that vouchers should generally cover the cost of renting a modest home in ZIP 17040. However, whether vouchers will keep pace with future increases in market rents is uncertain. Voucher amounts are adjusted periodically based on changes in the FMR, but this adjustment is not guaranteed to match the exact pace of market rent increases. It is advisable to monitor local housing trends and FMR adjustments closely to ensure continued profitability.
In conclusion, while the data provides some insights into the viability of investing in ZIP 17040 under the Section 8 program, it is essential to conduct thorough due diligence, including understanding local market dynamics and the specific terms of any potential Section 8 contracts.
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.