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 | $1,110 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,240 | $139,486 | 0.89% | C |
| 2BR | $1,590 | $235,449 | 0.68% | D |
| 3BR | $1,940 | $289,772 | 0.67% | D |
| 4BR | $2,120 | $389,496 | 0.54% | F |
| 5BR | $2,459 | $352,243 | 0.7% | D |
U.S. Census Bureau data (2024)
ZIP code 19605 is located in the city of Reading, Pennsylvania. This neighborhood is characterized by a relatively stable population of 21,419 residents, with only 14.1% of the households being renters. The median household income in this area stands at $92,648, indicating a middle-class community with a decent standard of living. The median home value in ZIP 19605 is $292,187, reflecting the affordability and accessibility of homeownership for many of its residents.
The rent economics in ZIP 19605 present an interesting scenario for Section 8 investors. The Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $1,410, while the actual market rent, according to the Census American Community Survey (ACS), is slightly lower at $1,402. This close alignment between the FMR and market rent suggests that there is little room for significant profit margins above the voucher amount, but it also indicates a relatively low risk of vacancy due to the attractiveness of the rents to voucher holders.
Given these conditions, ZIP 19605 would likely be more suitable for a hands-off voucher operator rather than a hands-on value-add buyer. The low percentage of renters and the modest gap between FMR and market rent imply that the potential for increasing rental income through renovations or other improvements is limited. Instead, the stability and proximity of the FMR to the market rent make it a good fit for investors looking to maintain consistent cash flow with minimal management effort.
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.