Location: Hamilton County, NY | Metro: Fulton County, NY
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 | $970 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $220,255 | 0.59% | F |
| 3BR | $1,550 | $291,491 | 0.53% | F |
| 4BR | $1,710 | $350,141 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 12032, Caroga Lake, NY, provides insights into potential investment opportunities in the area. The Fair Market Rent (FMR) for a two-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $1,200 annually. This translates to a monthly rental income of $100 per unit under the Section 8 program.
To calculate the gross yield, we need to consider the annual rental income relative to the median home value. With a median home value of $233,493, the annualized rental income of $1,200 implies a gross yield of approximately 0.51%. This calculation is based on the formula: Gross Yield = (Annual Rental Income / Median Home Value) * 100.
In contrast, the market rent for the area is listed as N/A, suggesting that there might be limited data available or significant variability in market rents. Without a specific market rent figure, it's challenging to provide an accurate gross yield comparison. However, if we assume that the market rent could potentially be higher than the FMR, the gross yield would likely exceed 0.51%, making it more attractive for traditional rental investments.
The renter density in Caroga Lake, NY, is 6.5%, indicating that a relatively small portion of the population relies on rental assistance programs such as Section 8. This low density suggests that landlords may face challenges in finding eligible tenants, which could impact the occupancy rates and the overall viability of Section 8 properties.
Additionally, the Days on Market (DOM) is listed as N/A, which means there is insufficient data to determine how quickly properties are typically rented out. This lack of information makes it difficult to assess the efficiency of the rental process and the potential risks associated with vacancy periods.
Given these factors, the scenario with the FMR of $1,200 presents a lower gross yield compared to what might be expected in a market with more robust rental data. For landlords and small-portfolio investors, this indicates that while Section 8 properties can offer stable, government-backed income, they may not be as lucrative as other rental investments in terms of gross yield. The more realistic scenario would depend on the availability of market rent data and the landlord's tolerance for risk and stability.
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.