Section 8 Fair Market Rent (FMR) for ZIP 17543 - 2027

Investment Score for ZIP 17543

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,190
1 Bedroom	$1,300
2 Bedrooms	$1,610
3 Bedrooms	$2,050
4 Bedrooms	$2,120
5 Bedrooms	$2,459
6 Bedrooms	$2,754
7 Bedrooms	$2,974
8 Bedrooms	$3,123

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,610	$362,287	0.44%	F
3BR	$2,050	$392,002	0.52%	F
4BR	$2,120	$597,633	0.35%	F
5BR	$2,459	$880,638	0.28%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 17543 (Lititz, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 17543 in Lititz, Pennsylvania, is set by HUD for 2026. For a two-bedroom apartment, the FMR is $1550 per month. However, the Zillow median price for a two-bedroom home in this area is $353,223, which translates to a monthly rent of approximately $1,346 based on a 5% annual rental yield. This suggests that the actual market rent is significantly lower than the FMR, creating a potential gap where voucher holders might find it challenging to secure housing that matches the FMR. The price-to-FMR ratio of 19.0x indicates that the median home value is nearly 19 times the FMR for a two-bedroom unit, which is unusually high and could be indicative of a strong owner-occupied market rather than a robust rental market. #### Affordability & Renter Profile In ZIP code 17543, 26.7% of the population are renters, indicating a moderate rental demand. With a median household income of $97,435, the cost of a two-bedroom apartment at $1550 represents 19.1% of the median income. This percentage is relatively low compared to national averages, suggesting that the rental market is generally affordable for the average resident. However, the occupancy rate of 97.0% implies that the rental market is tight, with few vacant units available. This tightness can create upward pressure on rents, making it difficult for lower-income individuals to find affordable housing even with vouchers. #### Investor Angle From an investor perspective, the ZIP code 17543 offers a potentially cash-flow positive opportunity if the investor can secure properties at or below the FMR. Given that the actual market rent is lower than the FMR, an investor who can acquire a property at a price that aligns with the Zillow median would likely see a positive cash flow when renting out the property at the FMR. However, the high price-to-FMR ratio of 19.0x suggests that the median home value is much higher than what would be considered a typical rental property. Therefore, investors should focus on multifamily units or single-family homes that are priced closer to the rental market norms rather than the median home values. The investment grade for this ZIP code is mixed. On one hand, the strong occupancy rate and the fact that the rental market is tight suggest a stable and potentially lucrative rental market. On the other hand, the high price-to-FMR ratio indicates that the overall real estate market is expensive, which could limit the number of affordable investment opportunities. #### Specific Actionable Insights 1. **Focus on Multifamily Units**: Investors should prioritize multifamily units, such as duplexes, triplexes, or small apartment buildings, which are more likely to be priced in line with the rental market norms. A two-bedroom unit priced at $1550 per month is within the FMR range, but the median home value of $353,223 is not practical for rental investments. 2. **Consider Lower-Income Areas Nearby**: Given the high price-to-FMR ratio, investors might want to consider areas nearby that have similar characteristics but lower median home values. This could provide better opportunities for acquiring properties at prices that align with the rental market and offer a more favorable cash flow. 3. **Engage with Local Real Estate Agents**: To identify specific properties that are priced appropriately for rental investments, investors should engage with local real estate agents who specialize in the Lititz area. These agents can provide insights into the actual rental market dynamics and help identify properties that are underpriced relative to their potential rental income. #### Bottom Line For Section 8-focused investors, the ZIP code 17543 presents a mixed picture. While the rental market is tight and there is a strong demand for housing, the high price-to-FMR ratio makes it challenging to find properties that are both affordable and profitable. Therefore, the recommendation is to **Hold** on to existing investments in this area but **Skip** new acquisitions unless they can be secured at prices significantly below the Zillow median. Investors should look for opportunities in nearby areas with similar characteristics but lower median home values to maximize their chances of success.

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.