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 | $1,000 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $330,302 | 0.42% | F |
| 3BR | $1,790 | $370,678 | 0.48% | F |
| 4BR | $1,820 | $500,388 | 0.36% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,190 for ZIP 17509 (Christiana, PA) will sufficiently cover the mortgage on a home priced at $409,360. According to typical mortgage calculations, a 30-year fixed-rate mortgage on a property costing $409,360 with a 5% interest rate would result in a monthly payment of approximately $2,200. At first glance, the FMR does not seem to cover the mortgage. However, it's important to consider that FMR is the maximum amount a landlord can charge for a rental unit, and the actual rent charged could be lower. Additionally, the FMR may increase over time, aligning better with future mortgage payments.
The investor might also express doubt about the adequacy of renter demand, given that only 36.7% of the housing units are occupied by renters. While this percentage is not high, it indicates a stable demand. Furthermore, the presence of renters suggests a willingness to pay for housing, which can be a positive indicator for the stability of rental income. To mitigate risk, investors should focus on properties that appeal to long-term renters and maintain competitive rental rates.
Another concern could be whether voucher holders will keep pace with market rents of $1,057. The data does not provide a direct answer regarding the specific dynamics of voucher distribution and usage in ZIP 17509. However, it's worth noting that voucher programs aim to ensure affordable housing, and while they may not always fully cover market rents, they can still provide a reliable source of income. Investors should research the local housing authority and understand the typical voucher amounts and renewal processes to make informed decisions.
In summary, while the FMR and renter demand percentages present challenges, they do not necessarily preclude successful investment opportunities in ZIP 17509. Careful planning and attention to market trends can help investors navigate these concerns effectively.
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.