Section 8 Fair Market Rent (FMR) for ZIP 17537 - 2027
Location: Lancaster, PA | Metro: Lancaster, PA MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,150 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
To decide whether to invest in ZIP 17537 (Unknown, PA) for Section 8 properties, follow this decision tree:
- 1) Does the FMR of $1330 (for zip FY 2024) cover the debt service on a property?
- Yes: If your debt service is less than $1330, then the FMR does cover it. This means that tenants receiving Section 8 benefits can afford the rent.
- No: If your debt service exceeds $1330, then it does not make financial sense to purchase a property in this ZIP code for Section 8 tenants, as the rental income will not be sufficient to meet your financial obligations.
- 2) How does the market rent compare to the FMR?
- Above FMR: If the market rent is higher than $1330, it indicates that the area is more expensive. However, for Section 8 investments, the focus should be on whether the FMR covers the debt service, not necessarily on the market rent being above the FMR.
- At FMR: If the market rent is exactly $1330, it aligns perfectly with the FMR. This scenario suggests a balanced market where Section 8 tenants can afford the rent.
- Below FMR: If the market rent is lower than $1330, it might indicate a less desirable area. However, it could still be viable if the FMR sufficiently covers the debt service.
- 3) Is there enough demand from renters in the ZIP code?
- It depends: The percentage of renters and the days on market (DOM) are critical factors. Without specific percentages and DOM data, it's impossible to determine if there is sufficient demand. However, generally speaking, a higher percentage of renters and a shorter DOM suggest a strong rental market.
The key to making a sound investment decision lies in the alignment between the FMR and your property's debt service requirements. Market rent and tenant demand are secondary considerations but still important for assessing the overall viability of the investment. Ensure you have the necessary data points to fully evaluate these factors before proceeding.
Data Sources: FMR data from HUD (2027).
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.