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 | $1,220 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $308,838 | 0.53% | F |
| 3BR | $2,100 | $373,703 | 0.56% | F |
| 4BR | $2,170 | $489,985 | 0.44% | F |
| 5BR | $2,517 | $741,969 | 0.34% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 17540 in Leola, PA, are significant and must be carefully considered. Tenant turnover is a major concern, as the market rent stands at $1,548, while the Fair Market Rent (FMR) for FY 2024 is set at $1,430. This discrepancy can lead to higher turnover rates, as tenants may struggle to afford the difference between the FMR and the actual market rent.
Vacancy exposure is another critical issue. The days on market (DOM) data is currently unavailable, which makes it difficult to predict how long a property might remain vacant. Given the uncertainty around vacancy periods, landlords could face extended periods without rental income, especially if the market is slow to fill vacancies.
Deferred maintenance is also a notable risk. With a typical home value of $400,962 and a median household income of $91,895, there is a considerable gap between property values and residents' ability to pay. This economic disparity may result in lower-quality properties due to a lack of funds for upkeep and repairs, potentially leading to increased maintenance costs for landlords.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 38.3%. High renter density generally indicates a strong demand for rental properties, including those that accept Section 8 vouchers. This demand can help ensure steady occupancy rates and reduce the likelihood of prolonged vacancies.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 17540 is moderate.
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.