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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,790 | $412,277 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 17518 is situated in a suburban area characterized by a relatively small population of 1,360 residents. With 22.8% of the population being renters, it indicates a community where the majority owns their homes, suggesting a stable and potentially affluent demographic. The median household income in this area stands at $64,875, which is indicative of a middle-class neighborhood capable of supporting various living standards. Additionally, the median home value of $451,565 reflects a market that values property highly, implying strong local demand for housing.
Moving into the economic specifics of renting, the Fair Market Rent (FMR) for ZIP 17518 in fiscal year 2024 is set at $1,360. This figure is notably higher than the reported market rent of $727 based on Census ACS data. The discrepancy between the FMR and the actual market rent suggests a significant subsidy opportunity for landlords who participate in the Section 8 program, allowing them to earn above-market rates while providing affordable housing options.
Given these conditions, ZIP 17518 would be well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's stable income levels and high FMR provide a reliable stream of rental income without the need for extensive property management. Meanwhile, value-add buyers could leverage the gap between FMR and market rent to improve properties and still benefit from the higher subsidized rents, thus enhancing the overall quality of the neighborhood while increasing their investment returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.