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 | $840 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $128,422 | 0.94% | C |
| 3BR | $1,620 | $141,660 | 1.14% | B |
| 4BR | $1,670 | $152,379 | 1.1% | B |
| 5BR | $1,937 | $152,549 | 1.27% | A |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 17401 in York, PA, is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 17401 as of fiscal year 2024 is set at $1040, whereas the Zillow Observed Rent Index (ZORI), which reflects the market rent, stands at $1,205. This creates a gap of $165, representing a 15.9% difference between the two figures.
In the context of York, PA, where 67.4% of residents are renters, the median home value is $146,277, and the median income is $42,826, the implications of this gap are significant. Landlords who accept housing vouchers under the Section 8 program can expect to receive a lower rent payment compared to the open-market rate, which could be seen as a cost of doing business in this area.
The FMR being less than the market rent means that voucher holders might not cover the full cost of renting a property at market rates. For instance, if a landlord charges $1,205 per month, but the FMR is only $1040, the landlord would have to accept a payment of $1040 from the government, plus any additional amount the tenant can afford. This scenario makes it challenging for landlords to maintain profitability solely based on rental income from voucher tenants.
However, this situation can also be viewed as an opportunity for landlords and small-portfolio investors to leverage other factors such as tax benefits, long-term stability of tenants, and potential government subsidies to enhance overall yield. Despite the initial lower rent, these supplementary benefits can help mitigate the financial impact of renting below market rates.
To summarize, the gap between the FMR and market rent in ZIP 17401 is $165, or 15.9%. While this gap represents a cost for landlords who choose to house voucher tenants, it also opens up possibilities for yield enhancement through other means available in the York, PA, real estate market.
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.