Location: Reading, PA | Metro: Allentown-Bethlehem-Easton, PA HUD Metro FMR Area
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 | $1,800 |
| 1 Bedroom | $2,100 |
| 2 Bedrooms | $2,550 |
| 3 Bedrooms | $3,190 |
| 4 Bedrooms | $3,440 |
| 5 Bedrooms | $3,990 |
| 6 Bedrooms | $4,469 |
| 7 Bedrooms | $4,827 |
| 8 Bedrooms | $5,068 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,550 | $403,481 | 0.63% | D |
| 3BR | $3,190 | $423,754 | 0.75% | D |
| 4BR | $3,440 | $642,517 | 0.54% | F |
| 5BR | $3,990 | $747,403 | 0.53% | F |
U.S. Census Bureau data (2024)
The median income in Breinigsville, PA (ZIP 18031) stands at $113,625. Given the market rate for rent (ZORI) is $2,076, a household earning the median income would spend approximately 22% of their gross monthly income on rent. This is higher than the generally recommended threshold of 30%, indicating that even at the median income level, rent is a significant portion of the household budget.
In contrast, the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) for the zip code in fiscal year 2024 is $2,020. This means that for those who qualify for housing vouchers, the government will pay up to $2,020 towards their rent. The difference between the ZORI and FMR is $56, which shows that landlords could potentially receive slightly less per unit when accepting vouchers compared to market rates.
With 23.7% of the 11,570 population being renters, there is a notable segment of the community looking for affordable housing options. However, the affordability gap suggests that many renters might struggle to find units they can afford without assistance. This creates a competitive environment for landlords, as they must balance the desire for higher rental income against the availability of potential tenants who can only afford units within the HUD voucher limits.
The takeaway for landlords is clear: while cash-paying tenants might offer the potential for higher rents, the reality of the local economy and the high cost of living relative to income levels means that there is a strong demand for affordable housing. Landlords should consider the benefits of accepting vouchers, such as guaranteed payments and a steady stream of tenants, especially given the tight competition for renters in this area. By focusing on affordability, landlords can ensure a stable occupancy rate and maintain good relationships with their tenants.
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.