Location: Harrisburg-Carlisle, PA | Metro: Harrisburg-Carlisle, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,170 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
To determine if a landlord should invest in ZIP code 17123 (Unknown, PA) for Section 8 properties, follow this decision tree based on the provided data:
1) Does the Fair Market Rent (FMR) of $1270 for the fiscal year 2024 clear debt service on a property?
No: If the FMR of $1270 does not cover the debt service costs, purchasing a property in ZIP 17123 for Section 8 tenants would result in financial loss. Do not proceed with the purchase.
Yes: If the FMR of $1270 covers the debt service costs, move to the next question.
2) Is the market rent above, at, or below the FMR of $1270?
Market rent is above FMR: If the average market rent exceeds $1270, landlords might consider alternative investment strategies that target non-Section 8 tenants, as they could potentially earn higher rents. However, if the primary goal is Section 8 investments, continue to the next question.
Market rent is at or below FMR: If the average market rent is close to or less than $1270, Section 8 properties can be competitive in the rental market. Proceed to the next question.
3) Are the percentage of renters and days on the market (DOM) sufficient to ensure enough demand?
It depends: Without specific percentages of renters and days on the market, it's challenging to provide a definitive answer. However, generally, if the percentage of renters is high and the DOM is low, there is likely strong demand for rental properties in ZIP 17123. Conversely, if the percentage of renters is low and the DOM is high, demand may not support the investment. To make an informed decision, gather more detailed data on the local rental market conditions.
In conclusion, the viability of purchasing a property in ZIP 17123 for Section 8 tenants hinges on the ability of the FMR to cover debt service costs, the competitiveness of market rents compared to FMR, and the overall demand for rentals in the area. Ensure you have accurate figures for all these factors before making any investment decisions.
Data Sources: FMR data from HUD (2027).
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.