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 | $1,040 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,820 | $263,604 | 0.69% | D |
| 4BR | $2,000 | $345,025 | 0.58% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 19562 hinges significantly on the interplay between rental yields and market stability. With a Fair Market Rent (FMR) of $1,330 for fiscal year 2024, compared to a market rent of $1,125, there is a notable premium for Section 8 properties in this area. This suggests a higher potential yield for landlords who can secure Section 8 tenants, making it attractive for those looking to maximize returns.
However, the stability of the market must also be considered. The ZIP code has a substantial proportion of renters at 43.2%, indicating a relatively stable demand for rental properties. The median household income of $80,407 provides some assurance that residents have the financial capacity to sustain their living expenses, including rent. Despite these positive indicators, the lack of data on the number of days on market (DOM) for rentals could imply volatility or inefficiency in the local real estate market.
The home value of $260,192 in ZIP 19562 places it in a moderate range, suggesting that property acquisition costs are reasonable but not excessively low. This figure, combined with the FMR and market rent data, indicates that while there is potential for high yield through Section 8 participation, the market's stability is somewhat ambiguous due to incomplete information on DOM.
To summarize, ZIP 19562 leans towards being a high-yield/medium-stability market. It is not quite a flip-style market due to the absence of extreme instability indicators such as high DOM. However, it is also not a purely steady-cashflow zone because of the unknowns around market efficiency and the volatility implied by the missing DOM data. For small-portfolio investors, securing Section 8 contracts can offer a significant boost in cash flow, while the presence of a sizeable rental population ensures a consistent demand for units.
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.