Location: Sullivan County, 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 | $1,230 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $310,192 | 0.58% | F |
| 3BR | $2,260 | $436,808 | 0.52% | F |
| 4BR | $2,430 | $550,384 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 10963, located in Otisville, NY, represents a modest-sized community with a population of 3,842 residents. Within this area, 29.6% of individuals are renters, indicating a significant but not overwhelming portion of the population relies on rental housing. The median household income stands at $82,989, which is a key figure when evaluating the potential success of Section 8 tenants in the area.
Section 8 vouchers are designed to assist low-income families, the elderly, and the disabled in affording decent, safe, and sanitary housing. In ZIP 10963, the typical market rent of $999 is notably lower than the Fair Market Rent (FMR) of $1,440 set for FY 2024. This suggests that landlords in Otisville can expect a competitive demand for their properties from voucher holders, as the rents they charge are below the threshold set by the FMR.
To understand the financial impact of renting to Section 8 tenants, it's important to consider the proportion of income that goes towards rent. With a median household income of $82,989, the average rent of $999 consumes approximately 3.1% of the annual income. This is a manageable figure for most households, even those receiving assistance through Section 8 vouchers. However, the actual percentage of income spent on rent by voucher recipients will be higher, as their incomes are typically lower than the median.
Landlords in ZIP 10963 should anticipate a diverse tenant pool, largely composed of low-income individuals who benefit from the rental assistance program. These tenants will have their rent subsidized up to $999 per month, making it feasible for them to live in the area without bearing the full cost of market rates. The presence of such a subsidy ensures a steady stream of qualified applicants, reducing the risk of vacancy and ensuring consistent rental income.
Given the relatively low market rent compared to the FMR, landlords can expect a high level of interest from voucher holders. This interest stems from the fact that the rents in Otisville are well below the maximum allowable rent under the voucher program. Consequently, landlords will likely find themselves in a position to attract and retain tenants who can provide timely and reliable payments, thanks to the government subsidy.
In summary, ZIP 10963 is an area with a notable renter population and a median income that supports the feasibility of renting to Section 8 tenants. Landlords should prepare for a tenant base that includes a substantial number of individuals who rely on rental assistance to secure housing. The financial stability provided by the voucher system makes this a viable option for landlords seeking a predictable income source.
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.