Location: York-Hanover, PA | Metro: York-Hanover, 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 | $1,250 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $248,168 | 0.71% | D |
| 3BR | $2,320 | $372,731 | 0.62% | D |
| 4BR | $2,430 | $499,993 | 0.49% | F |
| 5BR | $2,819 | $539,582 | 0.52% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 17349, specifically New Freedom, PA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $1,450 for fiscal year 2024, while the Census ACS reports the market rent to be $1,640. This means there is a $190 difference, or approximately a 13.1% gap, between what landlords can charge under the Section 8 program and the open-market rent.
Given that the FMR is lower than the market rent, it becomes evident that housing voucher tenants can offer landlords a yield play. However, this comes with the cost of accepting lower rental income compared to the open market. Landlords must weigh the benefits of guaranteed rent payments from the government against the reduced revenue per unit. For instance, the guaranteed $1,450 per month under Section 8 contrasts with the potential $1,640 in the open market, representing a $190 shortfall per unit each month.
In the context of New Freedom, PA, where only 9.9% of residents are renters and the median home value stands at $414,813, the appeal of Section 8 might be limited. The median household income in the area is $120,618, indicating a higher economic status among residents, which could lead to a preference for homeownership over renting. Despite this, the lower FMR under Section 8 still presents an opportunity for landlords who wish to serve this demographic, albeit at a lower margin than the open market would allow.
To summarize, the gap between the FMR and market rent in ZIP 17349 is $190, or 13.1%. This makes the area a yield play for landlords willing to accept the terms of the Section 8 program, but they must consider the economic realities of New Freedom, PA, where the population leans towards homeownership due to high median incomes and home values.
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.