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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $269,818 | 0.66% | D |
| 3BR | $2,170 | $359,298 | 0.6% | D |
| 4BR | $2,380 | $491,674 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 19541, Mohrsville, PA, reveals a unique balance between yield and stability that may appeal to certain types of investors. On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 stands at $1,420, which is notably lower than the market rent of $1,526. This suggests that while there is potential for rental income above the FMR, it's not drastically higher, indicating a moderate yield opportunity.
However, the median home value of $372,065 provides a significant capital base. The FMR being lower than the market rent means that investors could potentially increase their rental income slightly by renting at market rates, thereby enhancing their yield. Yet, this must be balanced against the risk of higher vacancy rates if rents are set too high relative to the local income levels.
Moving to the stability axis, only 9.6% of the population are renters, which is quite low. This indicates a less liquid rental market, meaning fewer people are actively seeking rentals at any given time. While the average daily days on market (DOM) is not available, the relatively low percentage of renters suggests a slower turnover rate, which can be both an advantage and a disadvantage depending on the investor's strategy.
The median household income of $107,625 is also a key factor. Higher incomes generally correlate with better tenant reliability and a reduced risk of default on rent payments. However, the low renter percentage implies that even though tenants might have higher incomes, they may prefer to own rather than rent, leading to a less active rental market.
Based on these figures, ZIP 19541 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The moderate difference between the FMR and market rent, combined with the higher median income, supports a stable investment scenario where cash flow is reliable but not exceptionally high. The low renter percentage points to a market where rapid flipping or short-term investments might not be as effective due to the limited demand for rentals.
To summarize, the primary drivers for this classification are the modest gap between FMR and market rent ($1,420 vs $1,526), the high median home value ($372,065), and the relatively high median income ($107,625) paired with a low renter percentage (9.6%). These factors collectively suggest a market suitable for long-term, stable cash flow investments.
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.