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 | $234,712 | 0.66% | D |
| 3BR | $1,840 | $281,301 | 0.65% | D |
| 4BR | $2,030 | $325,391 | 0.62% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 12086, which encompasses Hagaman, NY, in Fulton County, are driven by the Specific Area Fair Market Rent (SAFMR) rates set for this precise ZIP code. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is $1190. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards rent for a unit in this area. However, it's important to understand that the local market rent for a similar unit, according to the Census American Community Survey, is considerably lower at $898.
A landlord participating in the Section 8 program should be aware that the total reimbursement received includes both the tenant's contribution and any utility allowances. The tenant's portion of the rent is typically 30% of their adjusted income, but there are minimum and maximum limits. Utility allowances are additional payments made to cover electricity, gas, water, and sewer costs. These allowances can vary based on the size of the unit and the number of occupants.
To illustrate, let's assume a tenant's portion is calculated to be $200 per month, and the utility allowance for a two-bedroom unit is $150. In this case, the total reimbursement a landlord would receive from the Section 8 program would be $1190 (the SAFMR rate) plus $150 (utility allowance), totaling $1340. However, the actual payment received would be the sum of the tenant's portion ($200) and the government's subsidy ($1190), which equals $1390. This calculation assumes the government subsidy does not exceed the SAFMR rate.
Given that the local market rent is $898, landlords in ZIP 12086 would find themselves with a surplus if they participate in the Section 8 program. The surplus would be the difference between the total reimbursement of $1390 and the local market rent of $898, which amounts to $492 per month. This surplus can be used to offset maintenance costs, property taxes, or other expenses associated with owning rental properties.
In summary, landlords in ZIP 12086 who accept Section 8 vouchers for two-bedroom units will receive a higher total reimbursement compared to the local market rent. This creates a financial advantage for landlords willing to participate in the program, ensuring a steady income stream while also helping to provide affordable housing options for eligible tenants.
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.