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 | $1,100 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $236,849 | 0.65% | D |
| 3BR | $2,040 | $287,167 | 0.71% | D |
| 4BR | $2,140 | $426,761 | 0.5% | F |
| 5BR | $2,482 | $524,008 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 17406 in York, PA, reveals a significant gap between the Fair Market Rent (FMR) and the market rent as measured by Zillow's Rent Index (ZORI). For fiscal year 2024, the FMR is set at $1380, while the ZORI indicates a market rent of $1454. This creates a $74 difference, or approximately 5.3% below the market rate.
In the context of York, PA, where 17.5% of residents are renters, the median home value stands at $293,053, and the median income is $83,521, landlords must carefully consider the implications of accepting Section 8 vouchers. The FMR being lower than the market rent means that landlords who agree to house voucher tenants will be receiving rent that is below the local market rate. This can result in a lower cash flow per unit compared to renting to non-voucher tenants willing to pay the full market price.
The cost of housing voucher tenants below open-market rates involves understanding the trade-offs. While landlords might earn less in direct rental income, they benefit from guaranteed payments from the government if the tenant's portion is insufficient. Additionally, the stability provided by the Section 8 program can reduce vacancy rates and turnover costs, which are particularly relevant given the local median income of $83,521. This figure suggests that many residents may struggle to afford higher rents, making the reliability of Section 8 payments attractive despite the lower overall rental amount.
To summarize, the $74 gap, or 5.3%, between the FMR and market rent in ZIP 17406 is a critical factor for landlords and small-portfolio investors. Although this gap represents a potential reduction in rental income, it also ensures a steady stream of payments and a more stable tenant base, especially in an area where a significant portion of the population is already economically constrained.
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.