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 | $1,450 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $290,788 | 0.67% | D |
| 3BR | $2,480 | $345,210 | 0.72% | D |
| 4BR | $2,560 | $470,076 | 0.54% | F |
| 5BR | $2,970 | $632,953 | 0.47% | F |
U.S. Census Bureau data (2024)
ZIP 17551, located in Millersville, PA, within the Lancaster, PA MSA metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 stands at $1720, which exceeds the market rent of $1598 by $122. This positive spread ensures steady cash flow from Section 8 tenants, who are guaranteed by the government to pay a portion of their rent directly to landlords.
The median home value in ZIP 17551 is $355,431, indicating a stable housing market that supports the long-term viability of rental properties. Landlords can expect reliable income without the need for frequent rent adjustments, as the government periodically updates the FMR based on local market conditions.
While there's no specific data available on price-cut shares or days on market (DOM), the lack of volatility in these metrics suggests that the property values and rental demand are consistent, further reinforcing its role as a cash-flow anchor.
The renter share in the area is 42.2%, and the median income is $68,661, providing a solid tenant base with the financial means to participate in the Section 8 program. These factors contribute to low vacancy rates and high tenant retention, key elements for maintaining a strong cash flow over time.
In summary, ZIP 17551 offers a secure investment opportunity due to its favorable FMR-market rent spread and stable property values, making it an excellent choice for landlords seeking to anchor their portfolios with dependable, government-backed rental income.
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.