Location: Reading, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 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 | $1,020 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,710 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,420 | $328,707 | 0.43% | F |
| 3BR | $1,710 | $425,215 | 0.4% | F |
| 4BR | $1,880 | $548,136 | 0.34% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 19504, located in Barto, Pennsylvania, within Berks County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1280. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent for a two-bedroom unit in this specific area.
In contrast, the local market rent for a two-bedroom apartment, based on Census ACS data, is $1219. This indicates that the SAFMR is slightly higher than the average market rent, which could be advantageous for landlords participating in the program.
A landlord's actual reimbursement under a Section 8 voucher depends on several factors, including the tenant's portion of the rent and any utility allowances. Typically, the tenant is required to pay 30% of their adjusted income towards rent. For instance, if a tenant's monthly adjusted income is $1000, they would pay $300 towards rent. The remaining balance is then covered by the Section 8 voucher up to the SAFMR limit.
Utility allowances can also vary but are generally capped at a certain amount per unit. In ZIP 19504, the utility allowance for a two-bedroom apartment is typically around $250. This means that if the total rent plus utilities exceeds the SAFMR, the landlord will only receive up to $1280 from the voucher program, and the tenant must cover the rest.
To illustrate, consider a two-bedroom apartment rented for $1280 with a utility allowance of $250. If the tenant's portion is $300, the voucher program will cover $1030 ($1280 - $300), leaving no gap between the total rent and the voucher reimbursement. However, if the rent is higher, say $1350, the landlord will still only receive $1030 from the voucher plus the tenant's $300, totaling $1330. This leaves a $20 shortfall for the landlord.
In ZIP 19504, given the SAFMR is $1280 and the local market rent is $1219, landlords can expect a slight surplus when renting a two-bedroom unit for the market price. The typical reimbursement gap or surplus for a two-bedroom voucher in this ZIP code is a surplus of $61, assuming the landlord charges the local market rent and the tenant's portion is 30% of their adjusted income.
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.