Location: Albany-Schenectady-Troy, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $268,407 | 0.57% | F |
| 3BR | $1,840 | $377,145 | 0.49% | F |
| 4BR | $2,030 | $472,566 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP 12059, located in East Berne, NY, within the Albany-Schenectady-Troy, NY MSA metro area, is best suited as a cash-flow anchor in a Section 8 portfolio strategy. This classification is based on the favorable financial metrics associated with the area.
The Federal Market Rent (FMR) for ZIP 12059 in fiscal year 2024 is set at $1190. Comparatively, the market rent is lower at $985, creating a positive spread that benefits landlords participating in the Section 8 program. This means that landlords can collect rents at the higher FMR rate while tenants pay according to their income levels, subsidized by the government. The difference of $205 per unit represents a significant cash flow advantage, making this ZIP an attractive option for those seeking stable and predictable rental income.
Beyond the immediate cash flow benefit, the median home value in ZIP 12059 stands at $330,073. This figure indicates that the area is relatively affordable for both homeowners and renters, which supports the demand for rental properties. With a renter share of 8.9%, the majority of residents own their homes, suggesting a stable community with low volatility in housing demand. Additionally, the median income of $106,506 further underpins the economic stability of the area, reducing the risk of tenant default or high turnover rates.
While appreciation potential and diversification are important aspects of real estate investing, the strong cash flow dynamics in ZIP 12059 make it an ideal anchor for a Section 8 portfolio. Landlords can leverage this steady income stream to support other investments or to fund property improvements, thereby enhancing the overall performance of their investment portfolio.
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.