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 | $1,020 |
| 1 Bedroom | $1,110 |
| 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 | $331,826 | 0.42% | F |
| 3BR | $1,790 | $383,022 | 0.47% | F |
| 4BR | $1,820 | $530,006 | 0.34% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 17516 (Conestoga, PA, Lancaster, PA MSA metro) does not work favorably for landlords. The Fair Market Rent (FMR) for FY 2024 is set at $1340, while the Census ACS indicates a market rent of $1293. This means that landlords participating in the Section 8 program will receive slightly higher rents than the average market rate, but the difference is minimal.
Acquisition of properties in this area is relatively affordable given the median home value stands at $405,059. However, without specific data on the number of days on the market (DOM) and the percentage of homes that have been listed with a price cut, it's challenging to provide a comprehensive analysis. These metrics would typically help gauge how quickly homes sell and whether they're selling at their original asking price or with reductions.
Tenant demand in ZIP 17516 is moderate. With a total population of 5,180, the 12.5% renter share equates to approximately 647 renters. This figure suggests a steady but not robust demand for rental properties, indicating that landlords might face competition for tenants and should focus on maintaining quality and competitive pricing to attract and retain Section 8 eligible tenants.
In conclusion, ZIP 17516 offers a modest opportunity for landlords interested in the Section 8 program. The slight premium in FMR over market rent provides a minor financial advantage, though acquisition costs remain high. Tenant demand is present but limited, necessitating a keen focus on property management to ensure occupancy rates. Landlords must balance the benefits of slightly higher rents against the challenges of a somewhat saturated rental market and higher initial investment costs.
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.