Location: Williamsport, PA | Metro: Williamsport, 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 | $910 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $174,803 | 0.74% | D |
| 3BR | $1,730 | $224,647 | 0.77% | D |
| 4BR | $1,910 | $266,511 | 0.72% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 17702 in Williamsport, PA, is built upon the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1,130, while the Census ACS reports an average market rent of $1,067. This represents a difference of $63, or approximately 5.9%, where the FMR exceeds the market rent.
This scenario makes Williamsport, PA, particularly attractive for landlords and small-portfolio investors who can leverage the higher FMR to secure rental income that surpasses what they might achieve in the open market. Given that 26.8% of residents are renters and the median home value is $207,505, it's evident that the local housing market is segmented, with a notable portion of the population relying on rental properties. The median income in Williamsport is $70,210, which supports the viability of Section 8 vouchers as a means for low-income households to afford decent housing.
The yield advantage for landlords participating in the Section 8 program is clear. By renting to voucher tenants at the FMR rate of $1,130, landlords can command a higher monthly rent compared to the open-market average of $1,067. This not only provides a more stable income stream but also protects against potential market downturns where rents could fall below the FMR.
However, there are costs associated with housing voucher tenants. Landlords must adhere to Housing Quality Standards (HQS), which require the property to meet certain maintenance and safety standards. Additionally, landlords need to be prepared for regular inspections and possibly more paperwork than traditional leasing arrangements.
In conclusion, the gap between the FMR and market rent in ZIP 17702 presents a compelling opportunity for yield-focused investments. With a median home value of $207,505 and a median income of $70,210, the financial landscape in Williamsport supports the Section 8 program as a viable option for both tenants and landlords. The key is to balance the higher rental income with the additional responsibilities that come with participating in the Section 8 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.