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 | $299,624 | 0.58% | F |
| 4BR | $1,880 | $440,918 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 17087 is situated in a suburban neighborhood characterized by a relatively small population of 2,370 residents. Only 20.5% of these residents are renters, indicating a predominantly owner-occupied community. The median household income in this area stands at $93,150, suggesting a middle to upper-middle-class demographic. The median home value is notably high at $302,076, reflecting the affluent nature of the area.
When it comes to rental economics, the Fair Market Rent (FMR) for ZIP 17087 in fiscal year 2024 is set at $1,220. This figure is significantly higher than the reported market rent of $903, based on Census ACS data. This discrepancy presents an opportunity for investors looking to capitalize on the difference between subsidized rents and actual market rates.
Given these conditions, ZIP 17087 might suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's higher FMR compared to market rent means that properties participating in the Section 8 program can command rents above the typical market rate, providing a steady stream of income without the need for extensive property management. On the other hand, for hands-on investors, there is potential to improve and upgrade properties to justify rents closer to the FMR, thereby increasing profitability. However, the low percentage of renters suggests a smaller pool of potential tenants, which could impact occupancy rates and necessitate a strategic approach to attract and retain Section 8 participants.
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.