Location: Lancaster, PA | Metro: Lancaster, 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 | $1,030 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $292,386 | 0.48% | F |
| 3BR | $1,790 | $345,611 | 0.52% | F |
| 4BR | $1,830 | $404,748 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 17501 in Akron, PA, reveals an interesting scenario when comparing the Federal Market Rent (FMR) for a two-bedroom unit at $1280 annually and the market rent at $1,174 annually, against the median home value of $344,766.
First, let's calculate the gross yield based on the annualized FMR. The annual rent of $1280 implies a gross yield of approximately 0.37%. This is derived by dividing the annual rent ($1280) by the median home value ($344,766).
Next, consider the gross yield based on the annualized market rent. With an annual rent of $1,174, the gross yield drops to about 0.34%. Again, this figure is obtained by dividing the annual market rent ($1,174) by the median home value ($344,766).
Given that Akron, PA has a renter density of 33.5%, it is important to note that the FMR scenario offers a slightly higher gross yield compared to the market rent scenario. However, the actual feasibility of achieving the higher FMR rent must be evaluated against the local rental market conditions and the percentage of days on market (DOM), which is listed as N/A in this case. This lack of data makes it difficult to assess how quickly properties can be leased at either rate.
In conclusion, while the FMR scenario provides a marginally better gross yield, the market rent scenario reflects more closely what landlords might realistically expect in terms of rental income. The decision between the two should be made considering the property's location, condition, and the competition in the area. Investors should also factor in the long-term stability of Section 8 rents versus the potential variability of market rents.
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.