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 | $1,640 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,210 | $303,804 | 0.73% | D |
| 3BR | $2,810 | $363,630 | 0.77% | D |
| 4BR | $2,900 | $478,440 | 0.61% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 17584, which covers Willow Street, PA, in Lancaster County, are defined by the SAFMR (Small Area Fair Market Rent) and local market conditions. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this ZIP code is set at $1830. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent for such a unit, and it is specifically tailored to reflect the rental market dynamics within this particular ZIP code.
In contrast, the local market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1770 for a similar two-bedroom apartment. This suggests that the SAFMR is slightly above the average market rent, providing a buffer for landlords who might be concerned about covering their costs.
A landlord participating in the Section 8 program should understand that the voucher payment does not cover the entire rent. Tenants are required to contribute a portion of their income towards the rent, typically 30% of their adjusted monthly income. In addition to the base rent, there are utility allowances that can vary based on the size of the unit and the specific needs of the household. These allowances are designed to help cover the cost of utilities and do not directly affect the rent paid by the tenant or the reimbursement received by the landlord.
To illustrate, if a landlord charges $1830 for a two-bedroom apartment, the Housing Authority would pay the difference between the tenant's contribution and the SAFMR. If the tenant's share is $549 (assuming an adjusted monthly income of $1830), then the landlord would receive $1281 from the Housing Authority. This calculation ensures that the total rent does not exceed the SAFMR, thus keeping the housing affordable for low-income families while also ensuring landlords receive fair compensation.
Given the SAFMR of $1830 and the local market rent of $1770, landlords in ZIP 17584 can expect a slight surplus when renting to Section 8 participants. This surplus is due to the SAFMR being higher than the local market rent, indicating that landlords can charge up to the SAFMR without risking non-payment from the voucher program.
In summary, landlords in ZIP 17584 can expect the following reimbursement structure for a two-bedroom apartment under the Section 8 program: the Housing Authority will cover the rent up to $1830, minus the tenant's contribution, which is calculated as 30% of their adjusted monthly income. With the local market rent at $1770, landlords are likely to see a small surplus, ensuring they remain competitive in the local rental market while receiving stable income from the voucher program.
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.