Location: Lancaster, PA | Metro: Lancaster, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,190 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
U.S. Census Bureau data (2024)
The ZIP code 17506 presents several challenges for potential Section 8 landlords. Tenant turnover can be higher than expected due to the difference between the market rent and the $1330 Fair Market Rent (FMR) set for fiscal year 2024. This discrepancy means that landlords might face difficulties in attracting tenants willing to pay the higher market rates, leading to increased turnover and associated costs.
Vacancy exposure is another significant risk. With an average of N/A days on the market (DOM), landlords may struggle to fill vacancies quickly, especially if they rely solely on Section 8 vouchers. The longer properties remain vacant, the greater the financial strain on the landlord, as they must cover maintenance and mortgage costs without rental income.
The exposure to deferred maintenance is also noteworthy. Given the typical home value and median income figures are not available, it's challenging to assess the financial health of property owners and their ability to maintain homes adequately. Inadequate maintenance can lead to compliance issues with housing authorities and may necessitate costly repairs.
Despite these risks, there are mitigating factors. The 44.9% renter share in ZIP 17506 indicates a high concentration of renters, which typically correlates with higher demand for rental properties, including those that accept Section 8 vouchers. This demand can help offset some of the risks associated with tenant turnover and vacancy exposure.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.