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 |
|---|---|---|---|---|
| 3BR | $1,840 | $251,813 | 0.73% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,190 for ZIP 12092 will adequately cover the mortgage on a home valued at $232,662. The median home value in ZIP 12092 is approximately $223,000, which is slightly below the $232,662 valuation. Current average mortgage rates hover around 4.5%, implying a monthly mortgage payment of roughly $1,175 for a typical home in this area. Thus, the FMR of $1,190 aligns closely with the expected mortgage costs, making it feasible to cover these expenses with Section 8 rental income.
Another concern could be the level of renter demand, given that only 35.1% of the population rents their homes. However, this percentage does not necessarily indicate a lack of demand. The lower renter percentage suggests a stable mix of homeowners and renters, reducing competition among landlords. This stability can be beneficial for maintaining consistent occupancy rates and managing properties effectively.
The third objection might involve whether housing vouchers will keep pace with market rents of $1,039. According to recent data, the FMR for ZIP 12092 is set at $1,190 for 2024, which is higher than the current market rent. While this indicates that vouchers are likely to cover the market rent, it's important to note that voucher payment standards can vary based on local housing authorities and specific property conditions. Investors should regularly check the voucher payment standard for ZIP 12092 to ensure compliance and adjust their expectations accordingly.
Despite these considerations, the data available does not provide a comprehensive view of future changes in mortgage rates, renter demand fluctuations, or precise voucher adjustments. Therefore, ongoing monitoring of these factors is essential to maintain profitability and manage risks effectively.
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.