Location: Otsego County, NY | Metro: Otsego 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 | $1,080 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $199,269 | 0.78% | D |
| 3BR | $1,850 | $233,067 | 0.79% | D |
| 4BR | $2,080 | $283,934 | 0.73% | D |
U.S. Census Bureau data (2024)
The ZIP code 12116, located in Maryland, NY within the Otsego County, NY metro area, presents an interesting case study for real estate analysis. Its Fair Market Rent (FMR) for fiscal year 2026 is set at $1,300, which is lower than the average market rent of $1,664. This indicates that the rental prices in 12116 are more affordable compared to the broader metro area.
When examining the median home value of $199,504, it's clear that this figure is relatively modest within the context of the county. This suggests that 12116 could be considered a mid-tier neighborhood in terms of property values, neither excessively high nor low.
A notable feature of ZIP 12116 is its higher-than-average renter share of 12.1%. In the larger Otsego County, NY metro area, this percentage is typically lower. The combination of a below-metro home value and a higher renter share points to a potential sweet spot for Section 8 investments. Landlords and small-portfolio investors should consider this ZIP code as it offers a balance between manageable property costs and a higher concentration of potential renters who might benefit from federal housing assistance programs.
To further contextualize these figures, let's compare them with other ZIP codes in the Otsego County, NY metro area. A typical ZIP code in this region would have a higher FMR and market rent, reflecting a more expensive cost of living. The home values in these typical ZIPs are likely to exceed $199,504, indicating a premium sub-market. Conversely, ZIP 12116 stands out as a value pocket due to its lower FMR and market rent, coupled with a modest home value.
The divergence in renter share and home values in 12116 suggests a unique opportunity for investors looking to capitalize on affordable housing trends. It's a location where the demand for rental properties is higher relative to the cost of acquiring them, potentially leading to stable occupancy rates and manageable investment risks.
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.