Location: Kiryas Joel-Poughkeepsie-Newburgh, NY | Metro: Kiryas Joel-Poughkeepsie-Newburgh, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,400 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 10985 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area in fiscal year 2024 is set at $1810. However, the market rent is currently unreported, making it difficult to determine the exact gap. Despite this lack of market rent data, we can still provide insights based on the available information.
In ZIP 10985, the absence of reported market rent suggests that there might be limited data on rental prices in the area. This could be due to various factors such as a low number of renters, which stands at 0.0%, indicating that homeownership is predominant. With a median home value and median income both unspecified, we must rely on the FMR figure to guide our investment strategy.
If the FMR were to exceed the market rent, this would create an opportunity for landlords and small-portfolio investors to attract voucher tenants. Voucher holders would be willing to pay the higher FMR rate, effectively turning the property into a yield play. Landlords could benefit from guaranteed income through government subsidies without having to compete on price with other market rentals.
Conversely, if the FMR were lower than the market rent, accepting Section 8 housing vouchers would mean renting below open-market rates. This scenario would require careful consideration of the potential impact on cash flow and profitability. The cost of housing voucher tenants below market rates means that landlords must weigh the benefits of stable, government-backed rent against the lower revenue compared to what they could potentially earn from market-rate tenants.
Given the limited data, the decision to participate in the Section 8 program should be based on the broader economic context of the area, including trends in homeownership and any local policies that might affect rental markets. While the exact gap cannot be quantified in dollars or percentage without market rent data, the FMR of $1810 provides a benchmark for evaluating the financial feasibility of renting to voucher holders in ZIP 10985.
Data Sources: FMR data from HUD (2027). 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.