Section 8 Fair Market Rent (FMR) for ZIP 19506 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 19506

• Housing Authority of the County of Berks (Reading, PA) - 711 Section 8 vouchers
• Reading Housing Authority (Reading, PA) - 645 Section 8 vouchers

To determine if you should buy in ZIP code 19506 (Bernville, PA) for Section 8 investments, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1200 cover the debt service on a property priced at $395,040?

• Yes. The FMR of $1200 is sufficient to cover debt service on a property of this value. This means that a landlord can expect to receive rental income that meets or exceeds their mortgage payments and other fixed costs associated with owning the property.
• No. If the FMR does not cover the debt service, then purchasing a property in this area for Section 8 would not be financially viable. However, based on the provided data, the FMR does cover the debt service, so this branch applies only if there were different financial circumstances not reflected in the given data.

Step 2: Compare the market rent of $1,274 (from Census ACS) to the FMR of $1200.

• Market rent is above FMR. With a market rent of $1,274, which is higher than the FMR of $1200, landlords can potentially charge slightly more than the FMR to non-Section 8 tenants, increasing profitability.
• Market rent is at or below FMR. In this case, the market rent is just above the FMR, so this scenario does not apply. However, if market rent were at or below FMR, landlords would need to rely solely on the FMR for rental income, which might limit profitability unless the property has low operating costs.

Step 3: Assess the demand. Bernville has 11.3% of its population as renters, and the days on market (DOM) is listed as N/A, indicating either insufficient data or that rentals move quickly once listed.

• It depends. Given the 11.3% rental rate, there is a moderate level of demand for rental properties. The lack of specific DOM data makes it challenging to gauge how quickly properties are rented out. If you can secure a steady stream of Section 8 tenants and the property is well-managed, the investment could be worthwhile despite the moderate demand. However, without precise DOM data, it's difficult to predict the exact speed at which your property will be occupied, which is crucial for cash flow planning.

In summary, if the FMR of $1200 covers debt service on a $395,040 property and you can leverage the slightly higher market rent of $1,274, then Bernville, PA, is a reasonable location for a Section 8 investment. However, the success hinges on the ability to manage the property effectively and attract tenants in a timely manner, given the moderate rental demand and unclear DOM data.

Data Sources: FMR data from HUD (2027). 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.