Location: Reading, PA | Metro: Lancaster, 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 | $1,150 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $279,188 | 0.58% | F |
| 3BR | $2,000 | $384,153 | 0.52% | F |
| 4BR | $2,180 | $529,452 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 19543, located in Morgantown, PA, reveals a market that is somewhat balanced between yield potential and stability. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,370, which is slightly above the local market rent of $1,304. This suggests a modest opportunity for higher rental yields compared to the average market rate.
However, the median home value of $442,631 indicates a relatively high investment cost, which can impact overall returns when considering purchase price and associated expenses. The rental yield is thus influenced by these factors, making it neither exceptionally high nor low.
In terms of stability, the ZIP code shows a lower percentage of renters at 13.4%, which implies a primarily owner-occupied area. This characteristic tends to reduce the volatility of rental demand. Additionally, the median household income of $112,750 provides some assurance regarding the financial stability of residents, although the lack of data on days on market (DOM) makes it difficult to fully assess the liquidity of the rental market.
Given these metrics, ZIP 19543 does not align perfectly with either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a middle ground where there is potential for reasonable rental yields, but the market is also characterized by a degree of stability due to the significant owner-occupancy rate and decent household income levels. Landlords and small-portfolio investors should consider the balance between these factors when evaluating the attractiveness of this ZIP code for investment purposes.
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.