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 | $1,000 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $247,208 | 0.55% | F |
| 3BR | $1,760 | $294,005 | 0.6% | F |
| 4BR | $1,920 | $468,900 | 0.41% | F |
| 5BR | $2,227 | $523,235 | 0.43% | F |
U.S. Census Bureau data (2024)
Lebanon, PA (ZIP 17042) stands out within Lebanon County due to its unique demographic and economic profile. With a population of 40,161 residents, 29.9% of whom rent their homes, it reflects a community that is both diverse and stable. The median household income here is $74,831, which is above the national average, indicating a robust local economy. The median home value of $303,224 suggests a moderate to high-value housing market, making it an attractive area for homeownership.
For landlords and small-portfolio investors, the key metric to focus on is the Federal Market Rent (FMR) versus the actual market rent. In ZIP 17042, the FMR for the fiscal year 2024 is set at $1,270, while the market rent, as measured by ZORI, is $1,506. This discrepancy means that landlords who accept Section 8 vouchers can expect a subsidy that covers a significant portion of the market rent but leaves room for profit. The gap between the FMR and ZORI indicates a potential for landlords to balance affordability for tenants with reasonable returns on investment.
The data signature for ZIP 17042 reads as stable. The relatively high median income and home values suggest a steady economic base, while the rental rate provides insight into the demand for affordable housing. For investors, this stability offers a predictable environment, making it easier to plan and manage rental properties over the long term. However, the presence of a substantial difference between FMR and market rent also points to opportunities for those willing to engage with the Section 8 program, ensuring a consistent stream of income while serving a critical need in the community.
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.