Location: Montgomery County, NY | Metro: Albany-Schenectady-Troy, 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 | $1,100 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $282,287 | 0.55% | F |
| 3BR | $1,840 | $370,223 | 0.5% | F |
| 4BR | $2,030 | $418,423 | 0.49% | F |
| 5BR | $2,355 | $456,612 | 0.52% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 12053, which encompasses Delanson, NY, is fundamentally about leveraging the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 12053 in fiscal year 2024 is set at $1360, whereas the Census ACS reports an average market rent of $788. This creates a significant gap of $572 per month, or approximately 42%, in favor of the FMR.
This gap makes Delanson a prime location for a yield play strategy. Landlords can attract voucher tenants who pay up to the FMR level, thereby securing higher monthly rents compared to the open market rate. Given that only 10.7% of residents are renters, there's a limited competition for rental properties, making it easier to fill vacancies with voucher holders.
The median home value in Delanson stands at $350,609, indicating a relatively stable housing market. However, the median household income is $91,991, suggesting that many local residents might find it challenging to afford housing at the FMR level without assistance. Therefore, landlords can benefit from the government's willingness to subsidize rents up to $1360, while the typical market rate is much lower at $788.
In essence, the high FMR relative to the market rent provides an opportunity for landlords to increase their cash flow significantly. By accepting Section 8 vouchers, they can command rents that are nearly double the average market rate, effectively turning a property in Delanson into a lucrative investment. This strategy is particularly advantageous given the low percentage of renters in the area, ensuring a steady demand for subsidized housing.
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.