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 | $1,450 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,010 | $283,945 | 0.71% | D |
| 3BR | $2,390 | $365,772 | 0.65% | D |
| 4BR | $2,640 | $435,659 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 12074 (Galway, NY) provides a clear picture of the financial landscape for landlords and small-portfolio investors. Using the annualized Fair Market Rent (FMR) for a two-bedroom property at $1480 and the market rent at $1,560, we can derive the gross yields against the median home value of $331,871.
First, let's calculate the gross yield based on the FMR. The annual rent income from a two-bedroom unit would be $1480 multiplied by 12 months, resulting in an annual income of $17,760. Dividing this by the median home value of $331,871 gives us a gross yield of approximately 5.35%. This calculation assumes that the property is rented out continuously throughout the year without any vacancy periods.
Next, we consider the market rent scenario. With a monthly rent of $1,560, the annual income would be $18,720. When this figure is divided by the median home value of $331,871, it results in a gross yield of about 5.64%. Again, this is based on the assumption of full occupancy over the course of the year.
The difference between these two gross yields is minimal, standing at just under 0.3%. However, the more realistic scenario given the local conditions is the one using the market rent of $1,560 per month. This is due to the relatively low renter density of 9.8%, which suggests that the competition for rental properties might be lower, making it easier to command the higher market rate. Additionally, the N/A-day Days on Market (DOM) indicates that there isn't sufficient data to provide an average time for which rental properties remain unsold or unrented, further supporting the use of the market rent figure for a more accurate assessment.
In conclusion, while the FMR provides a baseline for potential rental income, the market rent offers a slightly more optimistic outlook with a gross yield of 5.64%. Given the context of Galway, NY, this higher yield appears more attainable and should be considered when evaluating investment opportunities in this area.
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.