Location: Lancaster, PA | Metro: Lancaster, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 17570 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1310. However, the market rent data is currently unavailable, which means we must rely solely on the FMR figure to draw conclusions.
In the absence of market rent data, it's critical to understand that the FMR is set by the U.S. Department of Housing and Urban Development (HUD) to reflect the average rent for a standard unit in the area. This figure is used to determine the maximum payment standards for Section 8 vouchers. Given that the FMR is $1310, landlords who participate in the Section 8 program will receive this amount per month for renting their units to eligible tenants.
The ZIP code 17570 has 0.0% of its population classified as renters, indicating a predominantly owner-occupied area. The median home value is not available, but the median income is $90,833. This suggests that the residents of this area have relatively high incomes, which could support higher rents in the open market if there were more rental properties available.
Since the FMR is the only data point we have, and it is set at $1310, landlords can expect to receive this amount per month for each Section 8 tenant. This makes the participation in the Section 8 program a yield play for landlords, as they are guaranteed a consistent income stream regardless of the local rental market conditions. The lack of market rent data means we cannot calculate the exact percentage gap, but it's evident that the FMR represents a stable, government-backed rental rate.
Landlords should be aware that while the FMR provides a predictable income, it might fall below what they could charge in an open market scenario where demand for rentals is higher. In such cases, the cost of housing voucher tenants could be seen as lower revenue compared to potential market rates. However, the trade-off includes reduced vacancy risk and a reliable source of income, which can be particularly appealing in areas with low rental activity.
To summarize, the FMR of $1310 in ZIP 17570 for fiscal year 2024 is a key figure for landlords considering the Section 8 program. It ensures a steady income, making it a strategic choice in a market with limited rental activity and high median incomes. Landlords should weigh this against the potential for higher rents in a more active rental market, though such data is currently unavailable.
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.