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 | $1,030 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $309,418 | 0.45% | F |
| 3BR | $1,790 | $387,896 | 0.46% | F |
| 4BR | $1,830 | $555,050 | 0.33% | F |
U.S. Census Bureau data (2024)
The real estate market in Pequea, PA (ZIP 17565) presents a unique scenario for both landlords and small-portfolio investors, given the current median home value of $406,764. Despite the median home value, the lack of percentage of listings that have been reduced and the median days on market (DOM) being unavailable suggest a stable housing market with little indication of distress or rapid turnover. This stability implies that landlords and investors can maintain their pricing power over the next 12-24 months without significant pressure to lower prices.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 17565 in fiscal year 2024 is set at $1,240, compared to the current market rate of $1,156 according to Census ACS data. This indicates that there is potential for rental price increases, aligning with government guidelines, which could provide a steady income stream for landlords and a gradual increase in rental yields for investors. However, it's important to note that rental prices are also influenced by local economic conditions, job availability, and population trends, which should be monitored closely.
For long-term investors, the data suggests a cautious approach to expectations of property appreciation. The median home value has not shown significant growth, and with the lack of percentage reductions in listings, it's reasonable to infer that the market is neither overheated nor experiencing a downturn. This implies that while appreciation might occur, it is likely to be modest and tied to broader economic factors rather than local market anomalies. Investors should focus on maintaining properties and ensuring they meet the FMR standards to secure steady cash flows and avoid vacancies.
In summary, the current median home value and rental dynamics in Pequea, PA, indicate a market where pricing power can be maintained, and rental income can potentially grow towards FMR levels. Long-term investors should anticipate modest appreciation and focus on operational excellence to ensure profitability.
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.