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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $211,967 | 0.73% | D |
| 3BR | $1,840 | $269,977 | 0.68% | D |
| 4BR | $2,030 | $312,695 | 0.65% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 12076 (Gilboa, NY) provides a clear view into potential investment opportunities. Using the Federal Market Rent (FMR) for a 2-bedroom apartment at $1250 per month, the annualized income would be $15,000. In contrast, the Census ACS reports a market rent of $990 per month, translating to an annualized income of $11,880.
To derive the gross yield for both scenarios, we apply these figures to the median home value of $227,114. For the FMR scenario, the gross yield is calculated as follows:
The gross yield represents the potential return on investment before expenses. Given that the renter density in Gilboa, NY is only 4.6%, it suggests a low demand for rental properties, including those under the Section 8 program. This makes the market rent scenario more realistic. The FMR of $1250 is a federal guideline and does not necessarily reflect actual market conditions, especially in areas with low renter populations.
The N/A-day DOM (Days on Market) indicates incomplete data regarding how quickly homes are rented, which could be due to the limited number of rentals available or the infrequency of rental transactions. This further supports the notion that the market rent figure of $990 is a more accurate representation of what can be expected in terms of rental income.
In conclusion, while the FMR scenario presents a higher gross yield of 6.6%, the actual market conditions suggest a more realistic gross yield of 5.2%. Investors should consider the lower renter density and the potential difficulty in finding tenants willing to pay the FMR when evaluating the feasibility of Section 8 investments in ZIP 12076.
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.