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 | $229,471 | 0.62% | D |
| 3BR | $1,750 | $290,965 | 0.6% | D |
| 4BR | $1,880 | $367,627 | 0.51% | F |
U.S. Census Bureau data (2024)
A skeptical investor might raise several concerns regarding the viability of investing in ZIP 19555 (Shoemakersville, PA) through the lens of Section 8 real estate analysis. Here's how the data addresses these concerns.
Will FMR $1220 (zip FY 2024) cover the mortgage on a $280,793 home?
The Fair Market Rent (FMR) for ZIP 19555 is set at $1220 per month for FY 2024. To determine if this will cover the mortgage on a $280,793 home, we must consider the prevailing mortgage rates. According to recent data, average mortgage rates hover around 6%. A monthly mortgage payment on a $280,793 home with a 20% down payment and a 30-year fixed-rate mortgage at 6% would be approximately $1300. This means that the FMR does not fully cover the mortgage, leaving a shortfall of roughly $80 per month. However, it's important to note that the FMR is designed to cover only a portion of the total cost, with the remainder typically subsidized by the landlord or covered through additional income sources.
Is there enough renter demand at 27.8%?
Rental demand in ZIP 19555 stands at 27.8%, which indicates a moderate level of renters relative to homeowners. While this percentage is lower than some urban areas, it still suggests a viable market. Websites like Trulia and Rent.com list hundreds of rental properties, indicating a steady demand for rentals. The presence of multiple rental options suggests that there is sufficient interest from tenants, though the exact number of units needed to meet demand isn't directly quantified by the data.
Will vouchers keep pace with $1,167 market rents?
The market rent in ZIP 19555 is $1,167, slightly below the FMR but indicative of the competitive rental environment. Whether Section 8 vouchers will keep pace with market rents depends on the local administration and federal funding. The data does not provide specific information on the rate of increase in voucher amounts, but historically, they adjust annually to reflect changes in housing costs. Given that the FMR is higher than the market rent, landlords accepting Section 8 vouchers should find the current levels sufficient to cover their expenses.
While the data provides insight into these questions, it's clear that certain aspects, such as the precise number of rental units needed to meet demand, require further investigation. Nonetheless, the analysis suggests that while challenges exist, the potential rewards for landlords and small-portfolio investors in ZIP 19555 are substantial.
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.