Section 8 Fair Market Rent (FMR) for ZIP 19540 - 2027

Location: Reading, PA | Metro: Lancaster, PA MSA

Investment Score for ZIP 19540

F
Monthly Rent (2BR)
$1,420
Median Price (2BR)
$259,186
1% Rule
0.55%
Annual Yield
6.57%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,420 $259,186 0.55% F
3BR $1,790 $362,444 0.49% F
4BR $1,880 $498,545 0.38% F
5BR $2,181 $654,748 0.33% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
11,957
Median Household Income
$100,000
Housing Units
4,590
Renter Percentage
17.0%
Occupancy Rate
94.3%
Renter Occupied
736

The ZIP code 19540, located in Mohnton, Pennsylvania, stands out within Berks County due to its unique demographic and economic characteristics. With a population of 11,957, only 17.0% of the residents are renters, indicating a predominantly owner-occupied community. The median household income is $100,000, reflecting a middle-class area. The median home value is notably high at $387,477, suggesting a stable housing market where property values are robust.

Mohnton's rental market dynamics are interesting when viewed through the lens of Section 8 vouchers. The Fair Market Rent (FMR) for the ZIP code 19540 for fiscal year 2024 is set at $1,240, while the Census American Community Survey (ACS) reports the market rent at $1,139. This indicates that landlords participating in the Section 8 program can expect slightly higher rents compared to the local market average, providing a modest incentive to accept vouchers despite the administrative complexities involved.

The data signature for ZIP 19540 reads as stable. The low percentage of renters suggests a strong sense of homeownership, which typically correlates with long-term residency and a lower turnover rate. The median income and home values also point towards a community that has maintained its economic status over time. While the slight difference between FMR and market rent could signal transitional pressures, the overall indicators suggest a neighborhood that is unlikely to experience significant changes in the near future.

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.