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 | $1,350 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,530 | $160,129 | 0.96% | C |
| 2BR | $1,960 | $255,783 | 0.77% | D |
| 3BR | $2,410 | $345,802 | 0.7% | D |
| 4BR | $2,590 | $450,296 | 0.58% | F |
| 5BR | $3,004 | $611,646 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP 19610 (Wyomissing, PA) can be analyzed using the Fair Market Rent (FMR) and Zillow Observed Rent Index (ZORI) figures provided. For a two-bedroom property, the annualized FMR is $1800 multiplied by 12, equating to $21,600. The ZORI, representing the market rent, is $1,973 per month, which annualizes to $23,676.
To calculate the gross yield, we divide these annual rents by the median home value of $374,248. Using the FMR, the implied gross yield is approximately 5.77%. With the ZORI, it increases to about 6.33%. These yields reflect the potential income generation from renting properties at these rates relative to the property value.
Given that Wyomissing has a renter density of 33.1%, it suggests a moderate demand for rental properties. However, the N/A-day Days on Market (DOM) indicates incomplete data, which could mean either very quick sales or rentals, or a lack of recent transactions to provide an accurate measure. Despite this, the higher gross yield based on the ZORI figure is more indicative of what landlords might expect under normal market conditions.
The FMR represents the maximum amount that a landlord can charge for a Section 8 voucher, while the ZORI reflects the actual market rent. Given the higher market rent, it's reasonable to assume that landlords would prefer to operate at the ZORI level when possible, due to the higher gross yield. This preference is especially true in areas where the renter base is not entirely dependent on government assistance programs, as indicated by the 33.1% renter density.
In conclusion, while the Section 8 program offers a guaranteed tenant through the FMR, the actual market conditions suggest a higher gross yield that landlords should consider. Operating at the market rent level would provide a better return on investment, assuming the property can attract tenants willing to pay the ZORI rate.
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.