Location: Reading, PA | Metro: Reading, 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 |
|---|---|---|---|---|
| 2BR | $1,420 | $246,848 | 0.58% | F |
| 3BR | $1,750 | $323,130 | 0.54% | F |
| 4BR | $1,880 | $435,960 | 0.43% | F |
| 5BR | $2,181 | $498,392 | 0.44% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 19508, Birdsboro, PA, in Berks County, revolve around the Subsidized Average Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1230. This figure is specifically tailored for this ZIP code, reflecting the unique housing conditions and costs in Birdsboro.
In contrast, the local market rent, based on Census ACS data, stands at $1172 for a similar unit. Landlords might initially think this means they can charge up to $1230 per month for a two-bedroom rental property and still qualify for Section 8 subsidies. However, the actual amount paid by the program is determined by the tenant's portion plus any utility allowances.
The tenant's portion of the rent is calculated based on their income. Generally, tenants contribute about 30% of their adjusted monthly income towards rent. If a tenant's adjusted monthly income is $1000, for instance, they would pay $300 towards rent. The remaining balance, up to the SAFMR limit, is covered by the Section 8 voucher.
Utility allowances vary but are typically modest. For ZIP 19508, these allowances might cover an additional $100-$150 per month, depending on the type and amount of utilities included in the allowance. This brings the total subsidy closer to the SAFMR of $1230.
To illustrate, if a landlord charges $1230 for a two-bedroom unit and the tenant contributes $300, the voucher would cover the rest, up to $1230, minus any utility allowances. Thus, the landlord receives the full SAFMR amount, assuming the total does not exceed the voucher's maximum coverage.
In ZIP 19508, given the SAFMR is higher than the local market rent, landlords participating in the Section 8 program will typically see a surplus when renting out a two-bedroom apartment. The difference between the SAFMR ($1230) and the local market rent ($1172) is $58, which represents the surplus landlords can expect beyond what the average market rent would be. This surplus can help offset the administrative and management costs associated with Section 8 rentals.
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.