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 | $1,210 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $354,708 | 0.46% | F |
| 3BR | $2,080 | $347,840 | 0.6% | F |
| 4BR | $2,140 | $410,423 | 0.52% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 17520 (East Petersburg, PA) on the axes of yield and stability reveals a unique investment scenario. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,610, which is notably higher than the market rent of $1,362. This discrepancy suggests a potential for above-average rental yields, making it attractive for investors seeking high returns. However, the median home value of $357,113 is relatively high, indicating that the capital investment required to enter this market is substantial.
On the stability axis, East Petersburg presents a mixed picture. With only 8.1% of residents being renters, the market lacks significant demand for rental properties. The absence of day DOM (days on market) data for rentals implies that there isn't a robust secondary market for assessing property turnover rates. However, the median household income of $93,235 suggests that residents have a strong financial foundation, which could translate into timely rent payments and lower vacancy rates.
Evaluating these factors together, ZIP 17520 does not fit neatly into a high-yield/low-stability "flip-style" market nor a steady-cashflow zone. Instead, it represents a niche opportunity where the potential for high rental yields exists but is tempered by low overall rental demand and limited data on property turnover. For landlords and small-portfolio investors, this area offers a chance to secure strong rental incomes from tenants who can afford to pay, but the investment should be approached with caution due to the relatively small pool of renters.
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.