The Impact of Student Housing on Lancaster’s Rental Market | Lancaster PA Real Estate
The Impact of Student Housing on Lancaster’s Rental Market
If you’ve been watching Lancaster PA real estate—whether as a renter, landlord, or investor—you’ve probably noticed that “student season” seems to nudge prices and availability in very specific pockets of the county. Here’s a data-driven, locally nuanced look at how student housing truly affects Lancaster’s rental market (and how to position yourself to benefit).
What actually moves the market?
Most F&M students live in college-owned/approved housing, so their off-campus impact inside Lancaster City is limited to a few blocks—and mostly through affiliated apartments.
Thaddeus Stevens students create real off-campus demand around the East Side/Chestnut corridor—many live in private rentals.
Millersville University demand concentrates in Millersville Borough, with some spillover to Southwest Lancaster for students who prefer city amenities and transit.
Lancaster City zoning caps unrelated roommates (default “family” = up to two unrelated, with a separate “nonfamily unit” pathway for three unrelated)—this shapes floor plans, by-bedroom pricing, and what’s legal.
Rents remain tight: recent third-party snapshots peg Lancaster’s median 1-BR and 2-BR at roughly $1,211 and $1,721 respectively, with year-over-year softness but still low vacancy county-wide.
Where the students are (and how they house)
Franklin & Marshall College (Lancaster City)
Fall 2024 undergrads: 1,808. The college is highly residential and relies on campus-owned/approved options (College Row, College Hill, theme houses). Result: less classic “3–4 roommate” pressure on private stock.
Thaddeus Stevens College of Technology (Lancaster City)
About 1,400 students; many live off-campus. That pushes demand for practical 1–2 BR units and small houses within a short commute of campus shops/labs.
Millersville University (Millersville Borough)
Fall 2024 headcount (UG + Grad): 7,009. Off-campus demand focuses around the borough with occasional spill into city neighborhoods for those who want downtown life or transit.
Lancaster Bible College (Lancaster City limits/Manheim Twp border)
LBC reported 2,300+ students across all locations/modalities; ~927 on-campus undergrads in Fall 2024. Off-campus demand is present but smaller than Stevens’.
Saint Joseph’s University – Lancaster (formerly PA College of Health Sciences, Greenfield)
Campus integrated into SJU in 2024; total enrollment previously reported around 1,770 with a large part-time/commuter share—more weekday/daytime demand, less classic roommate clustering.
The zoning + licensing rules that actually matter
Roommate limits inside Lancaster City.
Lancaster’s zoning definition of “family” allows up to two unrelated people as a default. The code separately defines a “nonfamily unit,” which can allow three unrelated persons living together (subject to zoning/use conditions). This framework is why you don’t see many legal 4-roommate student houses in the city proper.
Contrast: Millersville Borough.
There, a “family” may be up to three unrelated individuals—which better fits the classic student-house model and concentrates roommate rentals around campus.
City rental licenses, inspections, and lead-safe.
Lancaster City requires a residential rental license (biennial), inspections, and compliance with Property Maintenance and (for pre-1978) lead-safe requirements—operating costs and timelines you must budget for. Fee examples: $250 per unit (1–6 units, biennial); separate line items for STRs/rooming/dormitory. The City rolled out a revamped inspection cadence in 2023.
Takeaway for investors: You can absolutely operate student-friendly rentals, but the legal occupancy cap, license/inspection timing, and lead rules must shape your unit mix and underwriting from day one.
Rent & vacancy snapshot (why late summer feels “spicy”)
Median asking rents seen in recent trackers: 1-BR ~$1,211, 2-BR ~$1,721 (Zumper); Apartments.com’s local trend lines show 2-BRs often above $1,700; Apartment List shows a -4.1% YoY drop as of mid-2025 (softening after 2021–2023 run-up).
Vacancy still tight county-wide—especially for small, updated units near campuses and transit—so August/September turnover compresses showings and lease-ups. Point2’s market storylines echo the “low-vacancy” theme locally.
What that means in practice:
Expect peak competition late July–September (new/returning students).
Landlords often prefer 12-month terms; students may seek 9–10 month options or plan summer sublets with landlord approval.
Micro-markets to watch
East Side / Chestnut & Walnut corridors (City): Proximity to Thaddeus Stevens fuels steady demand for turnkey 1–2 BR units, accessory apartments, and small houses with off-street parking. Thaddeus Stevens College of Technology
West End / College Ave (City): F&M-adjacent blocks see stable occupancy via college-owned/approved buildings (College Row/College Hill) plus limited private rentals; turnover is more controlled than in classic student towns. Franklin and Marshall College
Millersville Borough: Traditional roommate houses (within 3-unrelated cap) keep rents resilient, especially walkable streets by campus. eCode360
Greenfield / East Lampeter: SJU Lancaster (PA College) students are often commuters/part-time, shaping demand for modern studios/1-BRs with weekday parking and easy Route 30 access. Saint Joseph's UniversityData USA
For investors: smart, legal ways to serve student demand
Underwrite to the actual occupancy rules. Build pro formas around two unrelated (or three under “nonfamily unit” if/where compliant) inside the City; assume three unrelated in Millersville (check address-level zoning).
License early. Factor the City’s licensing fees, inspection timing, and possible lead-safe steps into your timeline and reserves.
Design for durability. Hard-surface floors, easy-to-clean finishes, keyed bedrooms (where legal), and off-street parking add value.
Lean into transit + walkability. Many students prioritize a 10–20 minute walk or reliable bus route over a larger space.
Offer value-adds tenants will pay for: in-unit laundry, bundled high-speed internet, and flexible start dates that align with academic calendars.
Mini pro-forma example (illustrative):
Renovated 2-BR near Thaddeus Stevens underwriting at $1,600–$1,750/mo (aligned with recent 2-BR asking medians). Assuming taxes/ins/PMI/maintenance at $600–$750, PITI at $900–$1,100 (interest-rate dependent), you’re targeting a thin but solid cash-flow buffer with upside from rent growth and depreciation. Always test the address against zoning + license before closing.
For renters (students & parents): how to win the August rush
Start 60–90 days out. Have co-signers, pay stubs, and references handy.
Know the cap. In Lancaster City, don’t plan on 4+ unrelated roommates in a single unit; ask your agent/landlord if the property is licensed and how many unrelated occupants are permitted by code.
Budget realistically. Recent 1-BR and 2-BR medians run about $1.2–$1.7k; add utilities, renter’s insurance, and parking where applicable.
Walk the block. Nighttime drive-by, check parking, noise, and lighting.
Time your lease. If you need a 9–10 month term, expect a premium or plan an approved summer sublet.
Does student housing push prices up for everyone?
Short answer: It depends on the pocket.
Around Thaddeus Stevens and Millersville, concentrated demand can bid up small units near campus.
F&M’s four-year residential model (college-owned/approved) dampens the typical “student house” bidding wars in the immediate West End, keeping the spillover modest compared to other college towns.
County-wide, low vacancy and steady in-migration have a bigger baseline effect than students alone; the student cycle mostly tightens timing and reduces concessions in late summer.
Related local guides (for deeper planning)
Moving to Lancaster? Read my full Living in Lancaster Guide for neighborhoods, prices, and lifestyle tips.
👉 https://albertlinsdell.com/living-in-lancasterBuying soon? Start with my Lancaster Mortgage Pre-Approval Guide.
👉 https://albertlinsdell.com/blog/how-to-get-pre-approved-for-a-mortgage-in-lancaster-pa-2025-guideFirst-time buyer playbook (Lancaster-specific)—grants, costs, timelines:
👉 https://albertlinsdell.com/blog/first-time-home-buyer-lancasterInvestor primer: How to analyze Lancaster rental deals step-by-step:
👉 https://albertlinsdell.com/blog/how-to-analyze-a-lancaster-rental-investment
Have questions about a specific property’s zoning, license, or rental comps?
I help renters, parents, and investors navigate the nuances of Lancaster’s student-adjacent rentals—legally and profitably.
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