Location: Lebanon, PA | Metro: Lebanon, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 17088 reveals several potential challenges for landlords considering Section 8 participation. First, tenant turnover could be higher due to the significant gap between the market rent of $964 and the Fair Market Rent (FMR) of $1210 for fiscal year 2024. This difference suggests that tenants might seek properties that offer the full FMR subsidy, leading to frequent moves and increased vacancy periods.
Vacancy exposure is another concern, although the Days on Market (DOM) data is currently unavailable. High vacancy rates can lead to substantial financial losses, especially when combined with the lower market rent. Landlords should prepare for potentially longer vacancy periods, which could impact cash flow and overall profitability.
Deferred maintenance is also a risk factor, given the typical home value of $298,079 and a median income of $113,933. While the home values indicate a relatively stable market, the median income suggests that many residents may struggle to afford even the subsidized rent levels. This economic pressure could result in delayed repairs and maintenance, which would require landlords to bear the costs themselves to maintain property standards.
However, these risks must be weighed against the high renter share of 23.2%, which typically correlates with greater demand for housing vouchers. A dense rental market often means more Section 8 tenants looking for affordable housing options, reducing the likelihood of extended vacancies. The presence of many renters also indicates a strong need for affordable housing, which can be met through Section 8 participation, ensuring steady occupancy rates once the initial challenges are overcome.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.