Location: Chambersburg, PA | Metro: Chambersburg, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 17221 (Fannettsburg, PA) highlights a significant gap between the Fair Market Rent (FMR) of $930 and the average monthly market rent of $1,071. This gap is approximately $141, representing about 13.2% of the market rent. Given that the FMR is lower than the market rent, landlords and small-portfolio investors must understand the cost implications of housing voucher tenants below open-market rates.
In ZIP 17221, 13.9% of residents are renters, with a median income of $59,750. The median home value is $215,294, which is slightly below the state average of $278,018. Despite the lower median home value, the market rent remains higher, indicating a potentially challenging environment for investors relying solely on Section 8 vouchers.
The cost of housing voucher tenants below open-market rates means that landlords will earn less per unit compared to market-rate tenants. This difference can be significant, especially when considering the operational costs and maintenance required in a market where property values are declining. The average home value in 17221 has decreased by 3.1% over the past year, suggesting that appreciation may not be a reliable source of long-term value growth.
To summarize, while the presence of renters in ZIP 17221 provides a stable tenant pool, the lower FMR relative to market rent necessitates careful consideration of operational risks and the potential for reduced cash flow. Experienced investors should focus on thorough due diligence and strong tenant screening practices to mitigate these risks.
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.