Location: Reading, PA | Metro: Lancaster, 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 | $1,200 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,110 | $337,327 | 0.63% | D |
U.S. Census Bureau data (2024)
In ZIP code 17073, the Section 8 program operates under specific economic guidelines that are crucial for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1230. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent for such an apartment. It's important to note that the SAFMR is specifically tailored for this ZIP code, reflecting local housing costs more accurately.
The local market rent for a two-bedroom apartment in ZIP 17073, according to the Census ACS data, averages at $1,527. This means that landlords can expect the market to demand a higher rent than what the SAFMR covers. However, the Section 8 program aims to bridge this gap by requiring tenants to contribute a portion of their income towards rent.
Tenants participating in the Section 8 program typically pay 30% of their adjusted monthly income towards rent. If we assume an average adjusted income for a tenant in this scenario, the calculation would be as follows:
If a tenant's adjusted monthly income is $1,000, they would pay $300 towards the rent. The voucher would then cover the remaining amount up to the SAFMR of $1230. Therefore, the total reimbursement to the landlord would be $1530 ($300 from the tenant and $1230 from the voucher).
However, if the actual market rent is $1,527, there would still be a shortfall. In this case, the landlord would receive $1530 from the voucher and tenant combined, but the market rent is $1,527. This leaves a reimbursement gap of $97 per month. Landlords must decide whether this gap is acceptable or if they need to adjust their rental rates to align more closely with the SAFMR.
Additionally, the Section 8 program includes utility allowances. These allowances vary based on the size of the unit and other factors but do not directly affect the rent reimbursement calculation. They are intended to help cover the cost of utilities for the tenant.
To summarize, in ZIP 17073, landlords can expect a reimbursement of up to $1230 from the Section 8 voucher for a two-bedroom apartment. With the tenant contributing 30% of their adjusted monthly income, the total reimbursement might reach $1530. Given the local market rent of $1,527, landlords will face a reimbursement gap of $97 per month, unless they lower their rent to match the SAFMR.
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.