Section 8 Fair Market Rent (FMR) for ZIP 17562 - 2027

Location: Lancaster, PA | Metro: Lancaster, PA MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,000
1 Bedroom	$1,100
2 Bedrooms	$1,380
3 Bedrooms	$1,790
4 Bedrooms	$1,820
5 Bedrooms	$2,111
6 Bedrooms	$2,364
7 Bedrooms	$2,553
8 Bedrooms	$2,681

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,373

Median Household Income

$108,462

Housing Units

1,284

Renter Percentage

29.7%

Occupancy Rate

98.4%

Renter Occupied

375

Housing Authorities Serving ZIP 17562

The Housing Auth of the City of Lancaster (Lancaster, PA) - 1,120 Section 8 vouchers
Lancaster County Housing Authority (Lancaster, PA) - 1,003 Section 8 vouchers

To determine if you should buy in ZIP 17562 (Paradise, PA) for Section 8 investments, follow this decision tree based on the provided data:

Step 1: Debt Service Coverage Ratio (DSCR)

Does the Fair Market Rent (FMR) of $1280 cover the debt service on a property valued at $468,295?

No: The FMR does not sufficiently cover the debt service, making it an unprofitable investment.
Yes: Proceed to Step 2.

Step 2: Market Rent vs. FMR

Is the market rent of $1,170 above, at, or below the FMR of $1280?

Below: The market rent is lower than the FMR, which means Section 8 tenants can afford the rent. However, the gap between FMR and market rent is minimal, indicating limited profitability outside of Section 8.
At or Above: This scenario is not applicable given the data, but if market rent were equal to or higher than FMR, it would indicate that Section 8 tenants cannot afford the rent, making the area unsuitable for Section 8 investments.

Step 3: Demand Analysis

Are 29.7% of residents renters and is the number of days on the market (DOM) sufficient to ensure demand?

It Depends: With 29.7% of residents being renters, there is a moderate level of rental demand. However, the lack of data on days on the market (DOM) makes it challenging to assess the overall demand accurately. Consider local trends and consult real estate professionals for more insights into DOM.

In summary, if the FMR of $1280 does not cover the debt service on a $468,295 property, do not invest. If it does cover the debt service, then the fact that the market rent is below the FMR suggests that Section 8 tenants can afford the rent. Given the rental rate of 29.7%, there is demand, but without DOM data, the suitability of the investment remains uncertain. Consult local real estate experts to understand DOM trends and make a more informed decision.

Data Sources: FMR data from HUD (2027). 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.