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 | $1,270 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,450 |
| 5 Bedrooms | $2,842 |
| 6 Bedrooms | $3,183 |
| 7 Bedrooms | $3,438 |
| 8 Bedrooms | $3,610 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,830 | $237,603 | 0.77% | D |
| 3BR | $2,230 | $283,640 | 0.79% | D |
| 4BR | $2,450 | $287,706 | 0.85% | C |
U.S. Census Bureau data (2024)
A household in ZIP 19560, located in Temple, Pennsylvania, earns a median income of $80,769. The market rate for rent, according to the Census ACS, stands at $1,578. This means that the average renter would spend approximately 19.5% of their annual income on rent alone, which is slightly above the recommended threshold of 30% for housing expenses.
The Fair Market Rent (FMR) for ZIP 19560, set at $1,560 for fiscal year 2024, aligns closely with the market rate. However, it's important to note that the FMR is used as a benchmark for Section 8 voucher payments, indicating that the government aims to cover nearly all of the market rent through these vouchers.
In ZIP 19560, only 19.4% of the 9,137 residents are renters. This relatively low percentage suggests that the rental market is smaller compared to other areas, potentially leading to increased competition among landlords for tenants. The affordability gap between the median income and the market rent rate further intensifies this competition, as landlords must balance their rental prices against the financial capabilities of potential tenants.
For landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants, the data presents a clear picture. Accepting vouchers can provide a steady stream of rental income, especially given the close alignment between the voucher payment standard and the market rate. However, landlords should also be aware that the competition for cash-paying tenants might be fierce due to the limited number of renters in the area and the high cost of living relative to income.
The takeaway for landlords is that while accepting Section 8 vouchers ensures a reliable tenant who can pay the rent, the decision to prioritize cash-paying tenants requires careful consideration of the local market dynamics and the ability to attract a smaller pool of financially capable renters.
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.