Location: Lancaster, PA | Metro: Lancaster, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
The ZIP code 17604, located in Lancaster, PA, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 is set at $1330 for a one-bedroom unit. While specific market and median home value data is not available, the presence of a significant number of businesses and employment opportunities suggests a stable economic environment.
A cash-flow anchor provides consistent rental income, which is crucial for portfolio stability. In ZIP 17604, the high number of business establishments—49 in total—employs approximately 11,243 individuals with an annual payroll of $871,100,000. This indicates a robust local economy capable of supporting rental demand. Despite the lack of precise median income data, the substantial payroll figure implies that residents have sufficient earnings to cover their living expenses, including rental payments.
The absence of specific market and median home value data does not detract from the potential of ZIP 17604 as a cash-flow anchor. The focus on steady rental income aligns well with the principles of Section 8 housing, where the government subsidizes rents for low-income tenants. Given the FMR of $1330, landlords can expect a reliable stream of income without the volatility associated with appreciation plays or diversifiers.
In conclusion, ZIP 17604 should be considered as a cash-flow anchor due to its established business presence and employment opportunities, ensuring a consistent demand for rental properties and a dependable source of income for landlords participating in the Section 8 program.
Data Sources: FMR data from HUD (2027).
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.