Location: Lebanon, 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 | $1,180 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $317,996 | 0.5% | F |
| 3BR | $2,030 | $368,297 | 0.55% | F |
| 4BR | $2,090 | $498,735 | 0.42% | F |
| 5BR | $2,424 | $788,336 | 0.31% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 17545 (Manheim, PA) for a Section 8 property, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1270 cover the debt service on a property valued at $389,902?
If Yes: The FMR is sufficient to cover the debt service, which is a positive sign for Section 8 investment.
If No: The FMR does not cover the debt service, making it financially unfeasible to invest in this area for Section 8 without additional income sources.
The FMR of $1270 must be compared against the expected monthly mortgage payment, including principal, interest, taxes, and insurance. If the total monthly debt service exceeds $1270, then the answer is no.
Step 2: Is the Zillow Rent Index (ZORI) of $1,595 above, at, or below the FMR?
If Above: The market rent is higher than the FMR, indicating that landlords might face challenges in finding tenants willing to pay the lower Section 8 rates.
If At or Below: The market rent aligns with or is lower than the FMR, which could make it easier to attract Section 8 tenants.
Step 3: Do the 19.0% of renters and N/A-day days on the market indicate enough demand for Section 8 properties?
If Yes: There is sufficient demand. With 19.0% of the population being renters, there is a reasonable pool of potential Section 8 tenants. The lack of data on days on the market (DOM) suggests that listings move quickly, indicating strong rental market activity.
If No: There is insufficient demand. A low percentage of renters combined with high DOM would suggest that the rental market is weak, making it difficult to find tenants for a Section 8 property.
If It Depends: The 19.0% of renters is a moderate figure. Without specific DOM data, it's challenging to assess the overall demand accurately. However, the strong ZORI indicates a healthy market, which could offset some of the risks associated with lower FMR coverage.
In conclusion, the decision to invest in ZIP 17545 for Section 8 properties hinges on whether the FMR can cover your debt service and the alignment between market rents and the FMR. Additionally, the rental population percentage provides insight into the demand, but the absence of DOM data leaves some uncertainty. If the FMR cannot cover debt service, the answer is clear: do not invest. If it does cover, and market rents are at or below FMR, then the answer is yes. Otherwise, it depends on other factors such as your tolerance for risk and the specific property's condition.
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.