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 | $1,070 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,840 | $367,997 | 0.5% | F |
U.S. Census Bureau data (2024)
ZIP Code 17508, located in Brownstown, PA, offers a moderate investment opportunity for landlords and small-portfolio investors when considering the yield and stability axes.
Yield: The Fair Market Rent (FMR) for ZIP 17508 in fiscal year 2024 is set at $1,190, while the median home value stands at $347,800. This suggests a rental market that can generate decent cash flow relative to the cost of property. However, the absence of market rent data makes it difficult to gauge potential upside beyond the FMR.
Stability: The ZIP code has a relatively low percentage of renters at 12.2%, indicating a predominantly owner-occupied area. This can contribute to lower turnover rates and more stable occupancy. Additionally, the average household income is $104,597, which supports higher rental rates and reduces the risk of default. Despite the lack of data on days on market (DOM), the strong income levels suggest a resilient local economy capable of supporting rental demand.
The analysis indicates that ZIP 17508 leans towards being a steady-cashflow zone. The combination of a moderate rental yield ($1,190 FMR) and a stable tenant base (12.2% renters, $104,597 income) points to an investment environment where consistent returns are more likely than high-risk, high-reward scenarios. While the home value ($347,800) is significantly higher than the provided figure ($399,970), this discrepancy does not affect the overall stability assessment.
Investors should focus on properties that align with the local demographic, emphasizing quality and affordability to attract tenants. The strong income levels suggest that well-maintained, competitively priced rentals will perform reliably.
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.