Section 8 Fair Market Rent (FMR) for ZIP 17701 - 2027

Investment Score for ZIP 17701

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$880
1 Bedroom	$1,040
2 Bedrooms	$1,260
3 Bedrooms	$1,680
4 Bedrooms	$1,860
5 Bedrooms	$2,158
6 Bedrooms	$2,417
7 Bedrooms	$2,610
8 Bedrooms	$2,741

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,040	$120,106	0.87%	C
2BR	$1,260	$163,309	0.77%	D
3BR	$1,680	$200,698	0.84%	C
4BR	$1,860	$267,010	0.7%	D
5BR	$2,158	$272,636	0.79%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 17701 (Williamsport, PA) #### Section 8 Voucher Dynamics In ZIP code 17701, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1260 per month. This figure represents 28.4% of the median household income in Williamsport, which stands at $53,237. However, the actual rental market prices can be significantly higher. The Zillow median price for a two-bedroom home is $155,246, which translates into a monthly mortgage payment that would be much higher than the FMR. Given the high price-to-FMR ratio of 10.3x, it is evident that the actual rent prices far exceed the FMR. For instance, if we assume a conservative annual property tax rate of 1%, the monthly mortgage payment for a two-bedroom home could easily surpass $1000, making it challenging for Section 8 voucher holders to find suitable housing within their budget constraints. #### Affordability & Renter Profile The population of Williamsport is 43,104, with 45.4% of residents being renters. This indicates a significant portion of the local population relies on rental housing. The occupancy rate of 89.2% suggests that the rental market is relatively tight, with most units occupied. However, the high price-to-FMR ratio implies that there might be a mismatch between the affordability of available rentals and the income levels of many residents. With the median household income at $53,237, a large segment of the population may struggle to afford market-rate rents, particularly those who rely on Section 8 vouchers. These voucher holders are limited to paying up to $1260 for a two-bedroom unit, which is only a fraction of what the market demands. Consequently, the rental market is likely to be competitive, especially for lower-income households. #### Investor Angle From an investor perspective, the ZIP code 17701 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1260, but the actual market rent is much higher, given the price-to-FMR ratio of 10.3x. If an investor were to purchase a two-bedroom property at the Zillow median price of $155,246 and aim for a mortgage payment that aligns with the FMR, they would need to secure a loan with very favorable terms. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly payment would be approximately $750, which is well below the FMR. However, this calculation does not account for other expenses such as property taxes, insurance, maintenance, and utilities, which can add several hundred dollars to the monthly cost. Therefore, while the FMR might cover the mortgage, it may not be sufficient to ensure profitability. Given these factors, the investment grade for properties in ZIP code 17701 is moderate. While there is a strong demand for rental housing, the tight market and high actual rents mean that investors focusing solely on Section 8 vouchers may face limitations in finding properties that offer positive cash flow. Additionally, the competition for affordable units from non-voucher tenants could drive up the costs for landlords, further complicating the financial picture. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should consider acquiring properties that are priced closer to the FMR. For example, a two-bedroom apartment priced at $1260 per month would be ideal for attracting Section 8 voucher holders. This strategy requires careful selection of properties that are either older, smaller, or located in less desirable areas where the rent is more aligned with the FMR. 2. **Diversify Tenant Base**: To mitigate the risk of relying solely on Section 8 vouchers, investors should diversify their tenant base by also targeting non-voucher tenants who can pay higher rents. This approach can help balance the portfolio and ensure overall profitability. For instance, a three-bedroom unit priced at $1670 would still be attractive to some low-income families without vouchers, given the median household income of $53,237. 3. **Consider Multi-Family Units**: Given the high price-to-FMR ratio, multi-family units may offer better cash flow potential. A four-bedroom unit priced at $1830 could potentially house multiple individuals or families, allowing for higher overall rental income while still being within the reach of Section 8 voucher holders. This strategy can help maximize the use of space and income potential. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 17701 is to **Hold**. While there is a significant demand for affordable housing, the high price-to-FMR ratio makes it difficult to achieve positive cash flow with properties purchased at market rates. Investors should carefully evaluate their acquisition strategies, focusing on properties that are priced closer to the FMR and considering a diversified tenant base to improve financial performance. ### Summary ZIP code 17701 in Williamsport, PA, has a robust rental market with a significant portion of the population relying on rental housing. However, the high price-to-FMR ratio poses challenges for Section 8 voucher holders and investors aiming to capitalize on this demographic. The bottom line is that while there are opportunities, investors should proceed with caution and consider a mix of affordable and slightly higher-priced units to ensure a balanced and profitable portfolio.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.