Location: Albany-Schenectady-Troy, NY | Metro: Albany-Schenectady-Troy, NY MSA
| 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 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 12148 in Rexford, NY, are significant and must be carefully considered. Firstly, tenant turnover is a critical issue, as the market rent stands at $1,028 compared to the Fair Market Rent (FMR) of $1,330 for fiscal year 2024. This discrepancy can lead to frequent changes in occupancy, which is detrimental to maintaining a stable cash flow. Secondly, vacancy exposure is a concern due to the lack of available data on days on market (DOM), making it difficult to predict how quickly a unit might be filled once it becomes vacant. Lastly, there is an increased risk of deferred maintenance, given that the typical home value in the area is $548,240 while the median income is only $141,984. This suggests that residents may struggle to afford necessary repairs and upgrades, potentially leaving properties in a state of disrepair.
However, these risks are offset by the high concentration of renters in the area, with 18.7% of the population being renters. High renter density often translates into higher demand for rental assistance vouchers, which can help stabilize occupancy rates and ensure a steady stream of income. The presence of Section 8 tenants can provide a reliable source of rental income, even if it's slightly below the market rate.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP code 12148 is moderate.
Data Sources: FMR data from HUD (2027). 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.