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 | $1,230 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $280,542 | 0.59% | F |
| 3BR | $2,110 | $339,811 | 0.62% | D |
| 4BR | $2,180 | $470,711 | 0.46% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 17554, Mountville, PA, within the Lancaster, PA MSA, is favorable but requires careful consideration. The Federal Market Rent (FMR) for FY 2024 is set at $1210, which is lower than the market rent of $1,396 reported by the Census ACS. This suggests that landlords can potentially charge above the FMR and still remain competitive in the market.
Acquisition affordability in ZIP 17554 is moderate. The median home value stands at $343,527, making it a reasonable investment for those looking to enter the market. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates that the local real estate market might be stable, with little fluctuation in pricing and sales speed. This stability can be advantageous for long-term investments.
Tenant demand in ZIP 17554 is strong. With a total population of 7,453, 32.2% of residents are renters. This substantial rental market provides a solid base of potential tenants, ensuring a steady demand for rental properties.
Verdict: ZIP 17554 presents a balanced opportunity for landlords and small-portfolio investors. The rent math works in favor of charging above the FMR while remaining competitive. Acquisition costs are moderate, and the local real estate market appears stable. Strong tenant demand, with a significant portion of the population renting, ensures a reliable stream of potential occupants. Therefore, investing in rental properties in this area is advisable, given the favorable conditions for both rent collection and occupancy rates.
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.