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 | $1,260 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,070 | $358,711 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 12120 reveals an interesting picture when comparing the Federal Market Rent (FMR) to the median home value. With an annualized FMR of $1190 for a 2-bedroom unit in FY 2024, the implied gross yield can be calculated. Given the median home value of $334,774, the annual rent of $1190 translates into a gross yield of approximately 0.35%. This calculation is based on the assumption that the property value is representative of rental units in the area.
To calculate the gross yield, we use the formula:
(Annual Rent / Property Value) * 100 = Gross Yield
In this case, it would be:
($1190 / $334,774) * 100 ≈ 0.35%
However, without specific data on market rents, a direct comparison is challenging. If we hypothetically assume that market rents for a 2BR unit could be higher, say around $1500 per month, the gross yield would be significantly different. An annual market rent of $18,000 would imply a gross yield of about 5.37%. This is a stark contrast to the 0.35% derived from the FMR.
The gross yield comparison is concrete: the market rent scenario suggests a much more attractive investment opportunity compared to the FMR scenario. Given the 6.6% renter density in ZIP 12120, it's important to note that competition for Section 8 tenants might be high, which could affect occupancy rates. Additionally, the lack of data on days on market (DOM) makes it difficult to predict how quickly a property could be leased, especially under a Section 8 program.
The realistic scenario leans towards the market rent figure being more plausible for gross yield calculations, assuming the landlord can secure a tenant willing to pay market rates. The FMR gross yield of 0.35%, while accurate, reflects a government-set limit that may not fully capture the potential rental income in a competitive market environment.
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.