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 | $1,000 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $324,161 | 0.43% | F |
| 3BR | $1,790 | $368,319 | 0.49% | F |
| 4BR | $1,820 | $487,081 | 0.37% | F |
U.S. Census Bureau data (2024)
The median income in Stevens, PA (ZIP 17578) stands at $81,990, providing a baseline for assessing the affordability of housing in the area. The market rate for rent, according to the Census ACS, is $1,205 per month. To determine if a household can afford this rate, consider that the recommended housing expenditure should not exceed 30% of a household's gross income. At this rate, a household earning the median income would spend approximately $2,049.75 monthly on housing, which is significantly above the market rate.
However, the comparison between the market rate and the Fair Market Rent (FMR) set by the government for Section 8 vouchers offers a different perspective. The FMR for ZIP 17578 in fiscal year 2024 is $1,160, slightly below the market rate but still within reach for many households. This suggests that while the market rate is high relative to income, it is not unaffordable when considering the assistance provided by Section 8 vouchers.
With 21.5% of the 7,504 population being renters, there is a notable segment of the community that relies on rental housing. The affordability gap, where the market rate exceeds the FMR, indicates that landlords might face competition from those who accept only market-rate rents. This competition could drive up vacancy rates and put downward pressure on rental prices, especially in a market where the cost of living is already a significant portion of household budgets.
For landlords, the decision to accept Section 8 vouchers versus relying solely on cash-paying tenants has implications. Accepting vouchers can stabilize occupancy and ensure a steady stream of income, albeit at a rate slightly below the market. However, landlords must weigh the benefits of voucher stability against the potential for higher rents from cash-paying tenants, who may be fewer in number due to the affordability gap.
Takeaway: In ZIP 17578, landlords should consider the balance between accepting Section 8 vouchers at $1,160 and seeking cash-paying tenants willing to pay the market rate of $1,205. Given the competition and the affordability concerns, diversifying tenant mix may be prudent to maintain occupancy and manage financial risk effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.