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 | $362,618 | 0.38% | F |
| 3BR | $1,790 | $399,200 | 0.45% | F |
| 4BR | $1,820 | $565,360 | 0.32% | F |
| 5BR | $2,111 | $862,026 | 0.24% | F |
U.S. Census Bureau data (2024)
The rental market in ZIP 17579, encompassing Strasburg, PA, presents a dynamic environment where the Federal Market Rent (FMR) stands at $1360 for fiscal year 2024, while the actual market rent, as measured by Zillow's Observed Rent Index (ZORI), is slightly higher at $1,490. This indicates that the local rental market is robust and potentially experiencing upward pressure, as evidenced by the rents exceeding the government-subsidized rates.
The median home value in the area is $449,092, which suggests that homeownership is relatively affordable compared to many other regions. However, the lack of specific data on the percentage of price-cut shares and days on market (DOM) makes it challenging to definitively state whether supply outpaces demand or vice versa. Nonetheless, the fact that the ZORI is higher than the FMR implies that there may be more demand than supply, driving up rental prices.
A key indicator of long-term housing pressure is the 24.4% renter share of the population. This figure signifies a significant portion of residents are renters rather than homeowners, suggesting ongoing demand for rental properties. In markets with a high renter share, there is often sustained pressure on rental prices due to the continuous need for affordable housing options. Landlords and small-portfolio investors should take note of this trend, as it points towards a stable and possibly growing rental market.
To further understand the dynamics, consider the interplay between the FMR and ZORI. The FMR is designed to reflect what a typical unit might cost under government subsidy programs, whereas the ZORI captures the actual rents being paid in the private market. The gap between these two figures, in this case $130, signals that landlords can charge above the subsidized rate, indicating strong tenant interest and potentially limited availability of units. This scenario supports the notion that demand could be outpacing supply, making it a favorable market for those seeking to invest in rental properties.
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.