Location: Lebanon, 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 | $1,130 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $264,004 | 0.58% | F |
| 3BR | $1,980 | $329,866 | 0.6% | D |
| 4BR | $2,140 | $477,597 | 0.45% | F |
| 5BR | $2,482 | $557,846 | 0.44% | F |
U.S. Census Bureau data (2024)
ZIP 17078, located in Palmyra, PA within the Lebanon, PA MSA metro area, is best suited as a cash-flow anchor in a Section 8 portfolio strategy. This designation is based on several key factors derived from the latest data.
The Federal Market Rent (FMR) for ZIP 17078 in fiscal year 2024 is set at $1400 for a one-bedroom unit. Comparatively, the current market rent for a similar unit stands at $1,407. This minimal difference of just $7 between the FMR and market rent indicates that landlords can expect steady and reliable cash flow without significant fluctuations due to rental price discrepancies.
Further supporting its role as a cash-flow anchor is the median home value of $344,442. This figure suggests a stable housing market where property values are unlikely to experience dramatic increases or decreases. In such an environment, landlords can rely on consistent income streams from their rental properties without the risk of large capital gains or losses.
Additionally, the 0.2% price-cut share and N/A-day Days on Market (DOM) data indicate that the demand for rental units in ZIP 17078 is robust. Landlords will rarely need to lower their asking rents to attract tenants, and properties are likely to be occupied promptly upon becoming available, ensuring uninterrupted cash flow.
While the 27.9% renter share and median income of $93,135 might suggest potential for appreciation plays or diversification, these factors do not outweigh the benefits of using ZIP 17078 as a cash-flow anchor. The median income figure, while substantial, does not necessarily correlate to higher rental prices given the current market conditions.
In summary, ZIP 17078 is most effectively utilized as a cash-flow anchor in a Section 8 portfolio. Its close alignment between FMR and market rent, along with stable property values and strong tenant demand, ensures that it will provide consistent and predictable income, which is crucial for maintaining financial stability and growth in a real estate investment strategy.
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.