Section 8 Fair Market Rent (FMR) for ZIP 12020 - 2027

Location: Albany-Schenectady-Troy, NY | Metro: Albany-Schenectady-Troy, NY MSA

Investment Score for ZIP 12020

Monthly Rent (2BR)

$2,110

Median Price (2BR)

$323,133

1% Rule

0.65%

Annual Yield

7.84%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,530
1 Bedroom	$1,760
2 Bedrooms	$2,110
3 Bedrooms	$2,510
4 Bedrooms	$2,770
5 Bedrooms	$3,213
6 Bedrooms	$3,599
7 Bedrooms	$3,887
8 Bedrooms	$4,081

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,110	$323,133	0.65%	D
3BR	$2,510	$427,377	0.59%	F
4BR	$2,770	$555,134	0.5%	F
5BR	$3,213	$615,521	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

34,937

Median Household Income

$107,112

Housing Units

16,021

Renter Percentage

29.8%

Occupancy Rate

90.9%

Renter Occupied

4,336

To decide whether to buy in ZIP 12020 (Ballston Spa, NY) for Section 8, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $1,670 cover the debt service on a property priced at $425,462?

If yes: The FMR can support the debt service on a property of that value. This means the rental income from a Section 8 tenant would be sufficient to meet the mortgage payments and other costs associated with owning the property.
If no: The FMR of $1,670 is insufficient to cover the debt service on a $425,462 property. Landlords would need to consider properties with lower acquisition costs to ensure the rental income meets financial obligations.

Step 2: How does the market rent compare to the FMR?

The Zero Occupancy Rate Index (ZORI), which represents the market rent, is $2,034. This figure is above the FMR of $1,670.

If market rent is above FMR: There is a potential for higher returns if the property is rented out at market rates rather than relying solely on Section 8 tenants. However, landlords must balance the desire for higher rents with the availability of Section 8 vouchers.
If market rent is at or below FMR: Rents are aligned with the FMR, making it easier to attract Section 8 tenants. Landlords might still face competition from other low-cost rentals.

Step 3: Is there enough demand for rental properties?

In Ballston Spa, 29.8% of residents are renters. The data on Days on Market (DOM) is not available, but the percentage of renters suggests a moderate level of demand.

If yes: The 29.8% of renters indicates a steady demand for rental units. Landlords can expect a reasonable pool of potential tenants, including those eligible for Section 8.
If no: The percentage of renters is relatively low, suggesting a weaker rental market. Landlords may find it challenging to fill vacancies, especially with Section 8 tenants.
If it depends: Without DOM data, it's unclear how quickly rental units are filled. A high DOM could indicate slower demand despite the 29.8% rental rate. Conversely, a low DOM would suggest strong demand even with a moderate rental rate.

In conclusion, for ZIP 12020, the FMR does not sufficiently cover the debt service on a $425,462 property. Market rent exceeds the FMR, offering opportunities for higher returns. The rental rate of 29.8% suggests moderate demand, but the absence of DOM data makes it difficult to fully assess the speed at which properties are leased. Landlords should consider these factors and potentially look into properties with lower acquisition costs to better align with the FMR and ensure financial viability.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.