This paper studies the issues of channel allocation and power control for OFDMA femtocell networks. We formulate the channel allocation into a market style problem. Each femto base station (FBS) can be considered as a bidder to bid the channels within a sector of the macro base station (MBS). The FBS obtains its own “bidding price” by the potential service capability in the next cycle. To provide higher frequency reuse, we propose an interference constrained allocation scheme. It means we allow the nearby FBSs to have the chance to be allocated the same channel. With the help of pricing on the power setting of conflicting channels, we can calculate the optimal power with limited interference. The Stackelberg model has been used in our analysis on pricing policy. In the end, the simulation shows that we achieve higher system throughput than both the traditional (c, s, n) = (1, 3, 1) and (c, s, n) = (1, 3, 3) reuse policies.