Location: Reading, PA | Metro: Reading, PA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,240 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
U.S. Census Bureau data (2024)
ZIP code 19516, located within the Reading, PA MSA metro area, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) and the market rent for the area.
The FMR for a one-bedroom apartment in ZIP 19516 for fiscal year 2024 is set at $1320. In contrast, the current market rent for a similar unit is approximately $950. This $370 difference represents a substantial opportunity for landlords and small-portfolio investors to generate positive cash flow from their properties.
Although specific metrics such as price-cut share and days on market (DOM) are not available for ZIP 19516, the high renter share of 66.7% indicates that there is a strong demand for rental housing in the area. This demand, combined with the relatively low median home value, suggests that homeownership is less common, making rental properties a stable source of income.
The median household income in ZIP 19516 is $83,000. While this figure is above the national average, it does not necessarily translate into higher market rents. The income level supports the idea that tenants can afford the Section 8 rental assistance program, ensuring a steady stream of qualified renters who can meet the $1320 FMR requirement.
In summary, ZIP 19516 should be considered a cash-flow anchor due to the favorable spread between FMR and market rent. This spread provides a reliable cushion for landlords, allowing them to maintain positive cash flow even if they face unexpected maintenance costs or vacancies. Additionally, the high renter share and median income levels contribute to the stability and attractiveness of this ZIP code as part of a broader Section 8 investment strategy.
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.