Section 8 Fair Market Rent (FMR) for ZIP 17050 - 2027

Investment Score for ZIP 17050

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,440
1 Bedroom	$1,590
2 Bedrooms	$1,980
3 Bedrooms	$2,550
4 Bedrooms	$2,600
5 Bedrooms	$3,016
6 Bedrooms	$3,378
7 Bedrooms	$3,648
8 Bedrooms	$3,830

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,980	$283,235	0.7%	D
3BR	$2,550	$371,507	0.69%	D
4BR	$2,600	$561,275	0.46%	F
5BR	$3,016	$716,104	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 17050 (Mechanicsburg, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 17050 in Mechanicsburg, PA, is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1330 - 1BR: $1530 - 2BR: $1880 (which is 19.8% of the median household income) - 3BR: $2420 - 4BR: $2490 To understand how these FMRs compare to actual rents, we need to consider the occupancy rate and the percentage of renters in the area. With an occupancy rate of 96.6%, the housing market is relatively tight, indicating that there is a high demand for rental units. Additionally, 21.4% of the population are renters, suggesting that there is a significant segment of the community that relies on rental properties. However, the price-to-FMR ratio for a 2BR unit is 12.4x, which means that the median home value of $279,294 is significantly higher than the FMR of $1880. This disparity indicates that the actual rents in the area are likely much higher than the FMRs, creating a constraint for voucher holders who can only afford rent up to the FMR. Consequently, voucher holders may struggle to find suitable housing within their budget, especially given the tight market conditions. #### Affordability & Renter Profile Given the median household income of $113,720, the FMR for a 2BR unit represents a modest portion of the average household's earnings. However, the high price-to-FMR ratio suggests that the actual rental market is far more expensive than the FMR. For example, if a 2BR unit costs $279,294, it would be impractical for most voucher holders to find a comparable property within their budget. The high occupancy rate and the relatively small percentage of renters indicate that the rental market is competitive. This tight market makes it difficult for low-income families to secure affordable housing, particularly when they rely on Section 8 vouchers. As a result, there is likely a significant gap between the number of available units and the number of eligible voucher holders. #### Investor Angle From an investor perspective, the ZIP code 17050 offers mixed opportunities. The FMRs provide a baseline for what tenants can afford through Section 8 vouchers, but the actual rental market is much more expensive. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the cost of acquiring and maintaining rental properties. The median home value for a 2BR unit is $279,294, while the FMR is $1880 per month. Assuming a typical mortgage payment based on a 30-year fixed-rate loan at an interest rate of around 5%, the monthly mortgage payment for a $279,294 property would be approximately $1500. When you add property taxes, insurance, maintenance, and other expenses, the total cost of owning and renting out a property could easily exceed the FMR. Therefore, while the FMR provides a guideline for affordability, it is unlikely to cover the full cost of ownership for most properties in this ZIP code. This suggests that investing in properties for Section 8 tenants may not be financially viable unless the investor can acquire properties at a lower price point or has access to subsidies or other financial incentives. #### Investment Grade Given the high price-to-FMR ratio and the tight rental market, the investment grade for ZIP code 17050 is moderate to low. The primary challenge for investors is the difficulty in finding properties that can be rented out profitably at the FMR levels. Moreover, the competition for rental units among voucher holders and other renters adds another layer of complexity to the investment landscape. #### Specific Actionable Insights 1. **Focus on Lower-Priced Properties**: Investors should focus on acquiring properties that are priced below the median home value. For instance, a 2BR unit priced at around $200,000 would have a monthly mortgage payment of approximately $1000, making it more feasible to operate at the FMR of $1880. This strategy would help ensure positive cash flow. 2. **Utilize Subsidies and Incentives**: Given the high cost of ownership, investors should explore government programs and local incentives that can reduce the overall cost of acquiring and maintaining rental properties. These might include tax credits, grants, or other subsidies designed to support affordable housing initiatives. 3. **Consider Multi-Family Units**: Investing in multi-family units such as duplexes or small apartment buildings could offer better returns. For example, a 3BR unit with an FMR of $2420 might be more profitable if the property can be split into multiple rental units, thereby increasing the potential revenue. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 17050 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to find properties that can be rented out profitably at the FMR levels. While there is a significant demand for affordable housing, the current pricing structure and limited availability of lower-priced properties suggest that this ZIP code is not an ideal location for such investments. --- This analysis is grounded in the provided data and does not extrapolate beyond the given figures. It highlights the key challenges and considerations for Section 8-focused investors in Mechanicsburg, PA.

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.