Location: Chambersburg, PA | Metro: Chambersburg, 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 | $1,070 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,060 | $239,277 | 0.86% | C |
U.S. Census Bureau data (2024)
The analysis for ZIP code 17237 reveals interesting insights into the potential returns for landlords and small-portfolio investors through the lens of Section 8 versus market rents.
Based on the Fair Market Rent (FMR) for a 2-bedroom unit set at $1330 per month for fiscal year 2024, the annualized income would be $15,960. Given the median home value in the area stands at $229,426, the implied gross yield for a Section 8 property is approximately 7%. This calculation is straightforward: divide the annual rental income by the property's value.
In contrast, using the market rent figure of $1,296 per month as reported by the Census ACS, the annualized income drops slightly to $15,552. The gross yield in this scenario, when compared to the median home value, is approximately 6.8%. This difference, while small, can have significant implications for investment strategies.
To determine which scenario is more realistic, consider the 27.1% renter density in ZIP 17237. This indicates that nearly one-third of the population is renting, which supports a robust demand for rental properties. However, the absence of Days on Market (DOM) data suggests either a very competitive market where properties are rented quickly, or a less active market where listings might linger without clear metrics.
The Section 8 scenario offers a marginally higher gross yield, making it potentially more attractive to investors seeking stable, government-backed income streams. The market rent scenario, though slightly lower, reflects the actual rental rates in the area and could be more indicative of what landlords might realistically expect without the guarantee of Section 8 contracts.
Given the choice between the two, the Section 8 option provides a clearer path to consistent cash flow, albeit with the limitations and regulations associated with participating in the program. For those who prefer flexibility and are willing to navigate the local rental market dynamics, the market rent scenario presents a viable alternative.
In summary, the gross yield from Section 8 rentals at 7% is marginally better than the 6.8% from market rents. This slight advantage, combined with the security of long-term leases, makes Section 8 an appealing option for investors in ZIP 17237.
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.