Our issue at that age wasn't so much the reading level as how the print looked on the page. My son did not want to read anything that looked like a chapter book, so Magic Tree House and books of that type were out even though they were well within his ability.
What worked for us was for me to get picture books from the library, the kind that are meant for adults to read to children (so not leveled) for him to read. He found them visually (and psychologically) easier to deal with and the reading level was typically anywhere between 3rd and 6th grade (usually around 5th grade).
