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 | $1,150 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $244,572 | 0.68% | D |
| 3BR | $2,040 | $284,473 | 0.72% | D |
| 4BR | $2,200 | $351,583 | 0.63% | D |
| 5BR | $2,552 | $408,674 | 0.62% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 19609, located in Reading, PA, within Berks County, can be clearly understood by examining the SAFMR (Small Area Fair Market Rent) and local market rents. For a two-bedroom apartment in this specific ZIP code, the SAFMR for FY 2024 is set at $1680. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards rent.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is slightly higher at $1,721. This indicates that landlords in ZIP 19609 might face a small gap between the market rent and the SAFMR if they choose to participate in the Section 8 program. However, the SAFMR includes not only the base rent but also takes into account the tenant's portion of the rent and utility allowances.
A landlord who accepts a Section 8 voucher for a two-bedroom unit in ZIP 19609 should expect the following payment structure:
The tenant is responsible for paying approximately 30% of their adjusted income towards rent. If the tenant’s adjusted income is $1,200 per month, they would pay roughly $360 towards rent.
The remaining 70% of the rent, up to the SAFMR limit, is covered by the government. In this case, the government would pay up to $1,320 for the landlord, making the total rent close to the SAFMR of $1680.
Utility allowances are also part of the compensation package. These vary based on the size of the unit and other factors but typically add an additional amount to the monthly payment received by the landlord.
In ZIP 19609, the SAFMR is set specifically for this area, meaning it reflects the unique rental market conditions here. Given the local market rent of $1,721 and the SAFMR of $1,680, there is a slight reimbursement gap of $41 per month for a two-bedroom unit. This means landlords would receive $41 less than the local market rent for participating in the Section 8 program.
To summarize, landlords in ZIP 19609 can expect to receive a combination of payments from the government and the tenant, totaling up to the SAFMR of $1,680. With a local market rent of $1,721, this leaves a modest gap of $41 per month where the landlord would earn less than the prevailing market rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.