Location: Reading, PA | Metro: Lebanon, 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 | $980 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,750 | $354,841 | 0.49% | F |
| 4BR | $1,880 | $427,356 | 0.44% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 17026 in fiscal year 2024 is set at $1270. This figure represents the payment standard for Section 8 housing vouchers, which means that if you participate in the program, the government will pay up to this amount toward your tenant's rent. However, it is important to note that this is not the actual rent you should charge your tenants; it's the maximum reimbursement rate from the government.
To put this into perspective, the average rent for properties in ZIP 17026 is currently $897 according to recent Census Bureau data. This suggests that the FMR is higher than the typical market rent, potentially allowing landlords to earn more per unit than they would in a purely market-driven scenario. The difference between the FMR and the average local rent indicates a premium for participating in the Section 8 program.
The 12.3% share of renters in the area implies a steady demand for rental housing, making it a viable option for landlords looking to enter the Section 8 market. Given that the median home value in the ZIP code is around $350,102, this can also be seen as an opportunity for acquisition, especially if you can find rental properties below the average home price.
Before deciding to accept a Section 8 tenant, ensure that your property meets all the required inspection standards. The government will conduct an inspection to verify that the property is safe and habitable, and it must meet certain criteria to be approved. This is a critical step because failing to meet these standards can result in disqualification from the program, even after a tenant has been matched with your property.
In summary, the FMR of $1270 offers a higher reimbursement rate than the average local rent of $897, indicating potential financial benefits for landlords. With a 12.3% renter share, there is a reasonable demand for rental housing in ZIP 17026. To proceed, confirm that your property is ready for the necessary inspections to ensure compliance with the program requirements.
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.