Location: Kiryas Joel-Poughkeepsie-Newburgh, NY | Metro: Kiryas Joel-Poughkeepsie-Newburgh, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,510 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,170 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
The analysis for ZIP code 10949 in Unknown, NY, reveals some limitations due to incomplete data. However, we can still provide insights based on the available figures.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 10949 for FY 2024 is set at $1860 per month. This translates to an annualized rental income of $22,320 if a property qualifies under the Section 8 program. Given that the median home value is not available, we cannot directly calculate a cap rate. However, we can infer a gross yield by assuming the median home value is within a reasonable range for the area. For instance, if the median home value were hypothetically $300,000, the implied gross yield would be approximately 7.44%. If the median home value were higher, say $400,000, the gross yield would drop to about 5.58%.
Market rent data is also not available, which complicates a direct comparison between Section 8 and market rents. Without this information, it's challenging to assess the relative attractiveness of the two options. However, typically, market rents are higher than Section 8 rates, which could imply a potentially better gross yield in the open market.
The lack of specific data on renter density and days on market (DOM) further hinders a precise analysis. Nonetheless, it's important to note that these factors significantly influence the decision-making process for landlords and small-portfolio investors. High renter density suggests strong demand for rental properties, while a low DOM indicates quick turnover and less vacancy risk.
In conclusion, while the exact cap rate cannot be determined without the median home value, the gross yields implied by our hypothetical values suggest that properties under the Section 8 program in ZIP 10949 offer a decent return, especially if the actual home values are closer to the lower end of our hypothetical range. Market rents would likely provide a higher gross yield, but the decision should also consider the stability and guaranteed income that Section 8 provides versus the variability and potential risks of the open market.
Data Sources: FMR data from HUD (2027).
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.