Location: Philadelphia-Camden-Wilmington, 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 | $1,140 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $346,783 | 0.44% | F |
| 3BR | $1,940 | $417,726 | 0.46% | F |
| 4BR | $2,010 | $529,866 | 0.38% | F |
| 5BR | $2,332 | $893,536 | 0.26% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 17527, located in Gap, PA, within the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA, reveals several key points that landlords and small-portfolio investors should consider.
First, the rent math works favorably. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,270, slightly above the market rent of $1,250 reported by the Census Bureau's American Community Survey (ACS). This indicates that properties can be rented at or near the FMR without significant risk of overpricing.
Second, property acquisition is relatively affordable. With a median home value of $462,077, the cost of entering the market is moderate. However, the lack of data on days on market (DOM) and the percentage of homes that require price cuts suggests that the local real estate market may have some inefficiencies or limited activity, which could impact the ease of acquiring properties.
Third, there is a reasonable tenant demand. The population of 17527 is 6,094, with 24.0% of residents being renters. This implies a steady pool of potential tenants who are likely to seek rental housing in the area.
In conclusion, while the rent math aligns well with the FMR and market conditions, the affordability of acquisitions is mixed due to the unknown dynamics of the local real estate market. Despite these uncertainties, the presence of a consistent tenant base makes 17527 a viable investment opportunity for those willing to navigate the acquisition process carefully. Landlords can expect a stable rental environment with rents justifying the costs associated with property ownership.
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.