Section 8 Fair Market Rent (FMR) for ZIP 17055 - 2027

Investment Score for ZIP 17055

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	$1,310
1 Bedroom	$1,440
2 Bedrooms	$1,790
3 Bedrooms	$2,310
4 Bedrooms	$2,360
5 Bedrooms	$2,738
6 Bedrooms	$3,067
7 Bedrooms	$3,312
8 Bedrooms	$3,478

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
1BR	$1,440	$142,065	1.01%	B
2BR	$1,790	$233,283	0.77%	D
3BR	$2,310	$339,649	0.68%	D
4BR	$2,360	$490,104	0.48%	F
5BR	$2,738	$627,972	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 17055 (Mechanicsburg, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 17055 is set by HUD for 2026 as follows: - 0BR: $1180 - 1BR: $1350 - 2BR: $1670 (which represents 20.2% of the median household income) - 3BR: $2140 - 4BR: $2210 These figures represent the maximum rent that a Section 8 voucher holder can pay for housing. However, the actual rental market in Mechanicsburg is significantly higher than these FMRs. For instance, the Zillow median price for a 2BR property is $229,426, which translates into a monthly mortgage payment of approximately $1,140 based on a 4.5% interest rate over a 30-year term. This does not include property taxes, insurance, and maintenance costs, which would push the total cost above the FMR for a 2BR unit. The price-to-FMR ratio of 11.4x indicates that the market rent is much higher than the FMR, creating a significant gap between what voucher holders can afford and what landlords are willing to accept. Given this disparity, voucher holders face substantial constraints. They must find properties where the landlord is willing to accept the lower FMR rates, which can be challenging due to the high demand and limited supply of affordable rentals. Additionally, the FMR for a 2BR unit ($1670) is only 20.2% of the median household income, suggesting that even without a voucher, many residents might struggle to afford market-rate rents. #### Affordability & Renter Profile With a population of 42,060 and a median household income of $99,077, Mechanicsburg has a relatively affluent demographic. However, 29.2% of the population are renters, indicating a significant segment of the community that relies on the rental market. The occupancy rate of 96.9% suggests that the rental market is quite tight, with few vacant units available. This tightness could drive up rental prices further, making it even harder for voucher holders to find suitable housing. The high median household income and the fact that 2BR units' FMR represents only 20.2% of the median income suggest that the majority of residents can afford market-rate rents. However, the 29.2% of renters who rely on the rental market might include a mix of young professionals, families, and individuals who have lower incomes and depend on assistance like Section 8 vouchers. #### Investor Angle From an investor's perspective, the ZIP code 17055 presents both opportunities and challenges. While the median home value is high, the FMRs are set much lower, which means that investors looking to cater to Section 8 voucher holders will need to ensure their rental properties are priced competitively within these limits. For example, a 2BR unit with a Zillow median price of $229,426 would likely require a mortgage payment of around $1,140 per month. Adding property taxes, insurance, and maintenance costs, the total monthly expense could easily exceed $1,670, the FMR for a 2BR unit. Therefore, landlords would need to carefully manage expenses to remain profitable while accepting Section 8 vouchers. The investment grade for this ZIP code is moderate to low for Section 8-focused investors. The high price-to-FMR ratio indicates that the market is not aligned with the FMRs, and thus, investors might struggle to find enough tenants willing to pay the FMR rates. This could lead to lower occupancy rates and reduced cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as 0BR or 1BR apartments. These units have FMRs of $1180 and $1350 respectively, which are lower than the median mortgage payments for larger units. By targeting these smaller units, investors can better align their rental prices with the FMRs and potentially attract more voucher holders. 2. **Consider Location and Amenities**: Investors should look for properties in areas with lower market rents or those that offer unique amenities that could justify slightly higher rents. For instance, properties close to public transportation, schools, or commercial centers might command higher rents while still being within the FMR range. 3. **Rent Stabilization Policies**: Investigate any local rent stabilization policies or regulations that might impact the ability to increase rents beyond the FMR. Understanding these policies can help investors make informed decisions about pricing and long-term profitability. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 17055 is to **Skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow while adhering to FMR guidelines. Additionally, the high median household income suggests that there is less demand for subsidized housing, reducing the likelihood of finding enough tenants to fill units at FMR rates. Investors might fare better in areas with a higher percentage of renters and a closer alignment between market rents and FMRs.

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.