Location: Hamilton County, NY | Metro: Hamilton 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 | $970 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $289,059 | 0.45% | F |
| 3BR | $1,550 | $411,203 | 0.38% | F |
| 4BR | $1,710 | $529,957 | 0.32% | F |
U.S. Census Bureau data (2024)
If a landlord is considering buying a property in ZIP code 12108 (Speculator, NY) for Section 8 purposes, they must follow a decision tree based on the following criteria:
1) Does the Fair Market Rent (FMR) of $1,430 cover the debt service on a property valued at $313,247?
Yes. The FMR of $1,430 can potentially cover the debt service on a property priced at $313,247, assuming a reasonable interest rate and loan terms. For instance, with a 30-year fixed-rate mortgage at an interest rate of around 4%, the monthly mortgage payment would be approximately $1,500. Given that the FMR is slightly below this amount, landlords need to ensure that other income sources or cost-saving measures can make up the difference.
No. If the monthly debt service exceeds $1,430, then the answer is no. Landlords cannot rely solely on the FMR to cover their expenses, leading to a financial loss.
It depends. It depends on the exact terms of the mortgage and other associated costs. If the monthly debt service is just above $1,430, landlords might still consider purchasing if they can manage additional expenses or expect ancillary income from the property.
2) Is the market rent above, at, or below the FMR of $1,430?
Above. If the market rent is above $1,430, landlords should consider whether they can secure tenants paying the full market rate. This scenario indicates higher potential rental income but also requires a deeper understanding of the local housing market dynamics.
At or Below. If the market rent is at or below the FMR, then the answer is yes. The market conditions align with the Section 8 payment standards, making it feasible to find tenants who can pay the required rent through the program.
N/A. With no available data on market rent, the decision is inconclusive. Landlords should conduct further research to understand the local rental market before proceeding.
3) Are 31.7% of residents renters, and does the N/A-day Days on Market (DOM) indicate sufficient demand?
Yes. If the DOM is low, indicating quick turnover of rental properties, and 31.7% of residents are renters, there is sufficient demand for rental properties. This suggests a stable tenant pool and potentially less risk in finding and retaining tenants.
No. If the DOM is high, suggesting slow turnover, despite 31.7% of residents being renters, the answer is no. High DOM indicates weak demand, which could lead to prolonged vacancy periods and reduced income.
It depends. With no data on DOM, landlords must assess the local rental market's competitiveness and stability independently. A high percentage of renters (31.7%) suggests a decent market, but without DOM data, the overall demand remains uncertain.
In summary, landlords should proceed with caution when considering ZIP 12108 for Section 8 investment. The FMR of $1,430 provides a baseline but must be evaluated against actual market conditions and the landlord's ability to manage costs effectively. Without specific market rent and DOM figures, the decision hinges on the landlord's capacity to navigate the local rental market and their tolerance for financial risk.
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.