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 | $1,570 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,260 |
| 3 Bedrooms | $2,850 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,260 | $354,552 | 0.64% | D |
| 3BR | $2,850 | $426,830 | 0.67% | D |
| 4BR | $2,990 | $531,568 | 0.56% | F |
| 5BR | $3,468 | $580,509 | 0.6% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 10941, located in Middletown, NY, reveals that the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $1,910. This figure is notably lower than the current market rent, which stands at $2,172 according to ZORI (Zillow Observed Rent Index). This comparison indicates that voucher tenants will generally cashflow at a marginal level when renting standard units at the FMR rate.
To derive the rent-to-price ratio, we consider the median home value in the area, which is $439,477. Using the HUD FMR of $1,910, the rent-to-price ratio comes out to approximately 0.43%. This ratio suggests that rental income is relatively low compared to property values, making it less attractive purely from a cashflow perspective. However, this does not necessarily mean that investing in the area is unprofitable; it simply implies that the profit margins might be tighter.
The median Days on Market (DOM) for properties in this area is not available, and there is no significant share of homes that have undergone price cuts, with only 0.2% of listings having reduced their asking prices. These factors indicate a stable market where neither rapid turnover nor substantial price reductions are common. This stability can be beneficial for long-term investors who are looking for consistent returns rather than quick profits.
In conclusion, while the cashflow potential for Section 8 investors in ZIP 10941 is marginal due to the gap between HUD FMR and market rent, the strong angle lies in the stability and appreciation potential of the real estate market in this region. The combination of steady demand and relatively low price volatility makes this area a solid choice for those seeking reliable investment performance over time.
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.