Location: Kiryas Joel-Poughkeepsie-Newburgh, NY | Metro: Kiryas Joel-Poughkeepsie-Newburgh, NY 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 | $1,520 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,760 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $426,325 | 0.51% | F |
| 3BR | $2,760 | $543,275 | 0.51% | F |
| 4BR | $2,900 | $712,334 | 0.41% | F |
| 5BR | $3,364 | $769,324 | 0.44% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 10916 (Campbell Hall, NY) for a Section 8 property might raise several concerns. Let's address these with the available data.
Will FMR $1820 (zip FY 2024) cover the mortgage on a $594,795 home?
The Fair Market Rent (FMR) for ZIP 10916 is set at $1820 per month for fiscal year 2024. To determine if this will cover the mortgage on a home priced at $594,795, we need to consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly principal and interest payment would be approximately $3150. At $1820 per month, the FMR does not cover the mortgage payment, leaving a shortfall of $1330 per month. This highlights the financial risk involved in relying solely on FMRs to meet mortgage obligations.
Is there enough renter demand at 7.6%?
The vacancy rate in ZIP 10916 stands at 7.6%. While this indicates that there is some level of demand for rental properties, it also suggests that there is significant competition among landlords. A higher vacancy rate means that landlords might have to lower their asking price to attract tenants, which could further reduce the profitability of a Section 8 property. However, the data does not provide a comprehensive view of the tenant pool or the number of families eligible for the Section 8 program in the area, making it difficult to fully assess the demand.
Will vouchers keep pace with $1,394 market rents?
The average market rent in ZIP 10916 is $1394 per month. The question of whether vouchers will keep up with market rents is crucial for maintaining profitability. Historically, voucher amounts have been adjusted annually based on local housing costs. However, the data does not specify the exact amount of the Section 8 voucher in this zip code. Without this information, it is impossible to definitively state if the vouchers will cover the market rents. It is advisable to monitor local HUD adjustments closely to ensure alignment with market conditions.
In conclusion, while ZIP 10916 presents opportunities for Section 8 investments, careful consideration must be given to the financial risks associated with FMRs not covering mortgage payments and the competitive landscape indicated by the vacancy rate. Additionally, ongoing monitoring of voucher amounts relative to market rents is essential to maintain financial viability.
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.