Location: Montgomery County, NY | Metro: Fulton County, NY
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 | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $810 | $124,414 | 0.65% | D |
| 2BR | $1,030 | $170,858 | 0.6% | D |
| 3BR | $1,250 | $219,416 | 0.57% | F |
| 4BR | $1,400 | $247,723 | 0.57% | F |
| 5BR | $1,624 | $284,854 | 0.57% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 12095 (Johnstown, NY) for Section 8 investments, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,060 cover the debt service on a $193,945 property?
If your debt service (including mortgage, taxes, insurance, and maintenance) is less than $1,060 per month, then the answer is Yes. The FMR provides sufficient income to meet these obligations. For example, if the monthly debt service is $800, the difference between FMR and debt service is $260, which can contribute to covering other costs or generating profit.
If your debt service exceeds $1,060 per month, then the answer is No. The FMR does not provide enough income to cover your expenses. For instance, if the monthly debt service is $1,100, there would be a shortfall of $40 per month, making the investment unfeasible without additional income sources.
2) Is the market rent of $923 above, at, or below the FMR?
If the market rent is below the FMR, which it is at $923, then the answer is It Depends. While the FMR is higher, indicating potential for Section 8 tenants, the lower market rent suggests that non-Section 8 tenants might be harder to find, reducing overall demand flexibility. However, this also means that Section 8 rents could be more competitive relative to the market.
If the market rent were equal to or above the FMR, then the answer would be clearer: Yes, as the market supports the FMR, ensuring broader tenant demand.
3) Are 33.3% of residents renters and do they present enough demand given N/A-day days on market (DOM)?
The rental rate of 33.3% indicates a moderate level of demand. However, without specific DOM data, it's challenging to assess the speed at which properties are rented out. Assuming a reasonable DOM period, the moderate rental rate combined with the FMR being higher than market rent suggests Yes, there is enough demand for Section 8 properties. Landlords can expect steady occupancy rates due to the local rental habits.
If DOM were excessively high, indicating slow rental activity, the answer would shift to No. Slow rental turnover would make it difficult to maintain a steady income stream, even with Section 8 support.
In summary, for ZIP 12095, the decision hinges on your debt service costs. If these are manageable under the FMR, the investment is viable. The lower market rent makes the FMR more attractive but limits non-Section 8 tenant options. Moderate rental rates suggest sufficient demand, though DOM data would refine this assessment.
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.