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 | $950 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $194,506 | 0.68% | D |
| 3BR | $1,760 | $238,538 | 0.74% | D |
| 4BR | $1,850 | $422,069 | 0.44% | F |
| 5BR | $2,146 | $259,723 | 0.83% | C |
U.S. Census Bureau data (2024)
When considering whether to purchase a property in ZIP code 17404 (York, PA) for Section 8 investment, follow this decision tree based on the provided data.
1) Does FMR $1230 (zip FY 2024) clear debt service on a $255,860 property?
No: The Fair Market Rent (FMR) for ZIP 17404 in fiscal year 2024 is $1230. This amount must cover all costs associated with owning the property, including mortgage payments, insurance, taxes, and maintenance. For a property valued at $255,860, if the total debt service exceeds $1230 per month, then relying solely on Section 8 rental income would be insufficient to sustain ownership without additional financial support.
Yes: If the total debt service on a $255,860 property is less than $1230 per month, then the FMR can cover these costs, making it financially viable to own a property under Section 8 in this area.
2) Is market rent $1,266 (ZORI) above, at, or below FMR?
Above: The Zillow Rent Index (ZORI) for ZIP 17404 is $1,266. If market rents are higher than the FMR, landlords might consider renting to non-Section 8 tenants to maximize revenue. However, this also means that Section 8 tenants may find it challenging to afford market rates, reducing potential demand.
At: If market rents are close to the FMR, landlords can expect a balanced demand between Section 8 and market-rate tenants. This scenario provides stability but limits the upside potential of higher rents.
Below: If market rents are lower than the FMR, landlords will likely see strong demand for Section 8 properties since the rent subsidy makes up the difference. This can be advantageous for securing long-term tenants who are less sensitive to rent increases.
3) Are 28.9% renters + 11-day DOM enough demand?
Yes: With 28.9% of the population being renters and an average Days on Market (DOM) of 11 days, there is sufficient demand for rental properties in ZIP 17404. This indicates a healthy rental market where landlords can reasonably expect to fill vacancies quickly and maintain occupancy levels.
No: If either the percentage of renters is too low or the DOM is significantly longer, indicating a weak rental market, then demand for Section 8 properties may not be robust enough to ensure steady occupancy and cash flow.
It Depends: In cases where the demand is marginal, landlords need to evaluate other factors such as the local economy, job growth, and competition in the rental market. A stable or growing local economy can bolster demand even if initial metrics suggest caution.
In summary, purchasing a property in ZIP 17404 for Section 8 investment hinges on whether the FMR can cover your debt service, the relationship between market rents and FMR, and the overall demand for rentals. Carefully assess these factors to make an informed decision.
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.