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 | $349,097 | 0.4% | F |
| 3BR | $1,790 | $392,660 | 0.46% | F |
| 4BR | $1,820 | $511,028 | 0.36% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 17532, which encompasses Holtwood, PA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1190, while the Census ACS reports the average market rent at $889. This means that the FMR exceeds the market rent by $301, representing an increase of approximately 33.8%. The higher FMR is a critical factor in making this area a yield play for landlords who accept Section 8 vouchers.
The disparity between these figures suggests that landlords can potentially achieve higher rental yields by participating in the Section 8 program. In Holtwood, PA, where only 12.4% of residents are renters, the demand for affordable housing is relatively low compared to other areas. However, the program's stipulated FMR provides an opportunity for landlords to receive rents above what the local market might bear without government assistance.
Given the median home value of $409,928 and the median household income of $84,562, it is evident that the cost of living in Holtwood is quite high relative to incomes. The Section 8 program aims to bridge this affordability gap for low-income families, ensuring they can secure housing at rates subsidized to $1190, even though the typical market rate is lower at $889. This subsidy structure benefits landlords by offering a stable source of income at rates above the prevailing market conditions.
Moreover, landlords should consider the administrative and maintenance benefits of having a guaranteed tenant through the voucher system. While the initial setup and ongoing management may require some effort, the long-term stability and predictability of rental income can outweigh these costs, especially given the favorable comparison to the local market rent.
In conclusion, the $301 difference or 33.8% premium in FMR over market rent makes Holtwood, PA a lucrative option for landlords interested in maximizing their returns on investment. The Section 8 program not only supports low-income families but also offers a strategic advantage for property owners looking to capitalize on a yield play within a market where rents naturally fall below the subsidized rates.
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.