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 | $1,000 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,790 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,790 | $319,901 | 0.56% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 19501 reveals a market that offers a balance between yield and stability, making it neither a purely high-yield/low-stability flip-style market nor a strictly steady-cashflow zone.
To determine the yield potential, consider the Fair Market Rent (FMR) set at $1,160 for the fiscal year 2024. This is higher than the market rent of $1,115, indicating a modest premium for Section 8 properties. However, the median home value stands at $308,462, which is significantly higher than the FMR, suggesting that rental yields will be lower compared to areas with cheaper housing. Landlords can expect a reasonable return on investment, but it will not be exceptionally high.
Regarding stability, the ZIP code has 24.1% of residents who are renters, which is a relatively low percentage compared to many urban areas. This implies that there is less demand for rental properties, potentially leading to longer vacancy periods. The lack of data on days on market (DOM) makes it difficult to assess how quickly rentals can be filled. Additionally, the average household income of $110,179 is quite high, indicating that residents have a strong financial capacity, which supports stability. However, the high income also suggests that fewer individuals may rely on Section 8 assistance, reducing the pool of potential tenants.
Based on these figures, ZIP 19501 falls into a category of moderate yield and moderate stability. While the higher FMR provides an incentive for landlords, the high home values and moderate renter population suggest that returns will be balanced rather than maximized. The robust income levels offer some assurance regarding tenant reliability and financial stability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.