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 | $1,600 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,050 |
| 5 Bedrooms | $3,538 |
| 6 Bedrooms | $3,963 |
| 7 Bedrooms | $4,280 |
| 8 Bedrooms | $4,494 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,300 | $384,361 | 0.6% | F |
| 3BR | $2,900 | $429,963 | 0.67% | D |
| 4BR | $3,050 | $470,585 | 0.65% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 10928, Highland Falls, NY, reveals an interesting contrast between the federal market rent (FMR) and the actual market rent. The annualized FMR for a 2BR unit in fiscal year 2024 is set at $1920, while the Census ACS reports the market rent at $1670 per month.
To derive the gross yield, we first calculate the annual rental income for both scenarios. For the FMR scenario, the annual rental income is $1920 multiplied by 12 months, totaling $23,040. Given the median home value of $414,562, the implied gross yield for the FMR scenario is approximately 5.56%. This is calculated as follows:
In the case of the market rent, the monthly figure of $1670 translates into an annual rental income of $20,040. Using the same median home value, the implied gross yield for the market rent scenario is about 4.84%. Here's the calculation:
Given the renter density of 39.4%, it's clear that the market rent scenario is more realistic. While the FMR provides a benchmark for subsidized housing, the actual market conditions suggest that landlords would be more likely to receive the lower market rent. Additionally, the N/A-day DOM (days on market) indicates either a lack of data or a very active market where units are rented quickly, further supporting the use of market rent for a more accurate yield calculation.
The difference between the two yields is significant. A 5.56% yield based on FMR suggests a higher potential return, but it does not reflect the reality of what landlords can expect in terms of rental income. On the other hand, a 4.84% yield based on market rent is a more conservative estimate and aligns better with the local rental market dynamics. Therefore, for investment decisions, the market rent yield should be considered more reliable.
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.