Location: Greene 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 | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $283,480 | 0.54% | F |
| 3BR | $1,840 | $352,635 | 0.52% | F |
| 4BR | $2,130 | $422,113 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 12087, Hannacroix, NY, reveals some interesting dynamics between the Federal Market Rent (FMR) and the actual market rents. Using the annualized figures, we can derive the gross yields for both scenarios.
First, let's consider the Federal Market Rent for a 2BR unit, which stands at $1390 per month. This translates to an annual rental income of $16,680. Given the median home value of $341,440, the gross yield based on the FMR would be approximately 4.9%. The calculation is straightforward: divide the annual rental income by the median home value and multiply by 100 to get the percentage.
Next, we look at the market rent, which is reported as $1,614 per month according to the Census ACS. This equates to an annual rental income of $19,368. When compared to the median home value, the gross yield increases to about 5.7%. Again, this is calculated by dividing the annual rental income by the median home value and converting it into a percentage.
The difference in gross yields between the two scenarios is significant. While the FMR provides a lower gross yield of 4.9%, the market rent offers a higher gross yield of 5.7%. However, the reality of the situation must also account for the low renter density of 5.9% and the unavailability of the days-on-market (DOM) data. These factors suggest that the likelihood of maintaining a steady stream of tenants at market rates could be challenging due to the limited number of potential renters in the area.
In conclusion, while the market rent scenario implies a more attractive gross yield, the practicality of achieving and sustaining such yields is questionable given the low renter density. Landlords and small-portfolio investors should lean towards the more conservative FMR yield of 4.9% when evaluating the potential returns of properties in ZIP 12087. This approach aligns better with the local market conditions and tenant availability.
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.