Location: Albany-Schenectady-Troy, 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 | $1,620 |
| 1 Bedroom | $1,870 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,670 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,240 | $253,920 | 0.88% | C |
| 3BR | $2,670 | $367,579 | 0.73% | D |
| 4BR | $2,940 | $494,016 | 0.6% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 12158, located in Selkirk, NY, reveals a stark contrast between the government-subsidized rental income and the market-driven rental rates. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $1810 annually, while the market rent based on Census ACS data is $1,653 per month.
To calculate the implied gross yield, we first need to annualize the market rent: $1,653 multiplied by 12 months equals $19,836 annually. With the median home value in the area standing at $359,449, the implied gross yield for a property rented at the market rate would be approximately 5.52%. This is calculated by dividing the annual market rent ($19,836) by the median home value ($359,449).
In contrast, the annualized FMR of $1810 would result in a significantly lower implied gross yield of about 0.50%, calculated by dividing the annual FMR ($1810) by the median home value ($359,449).
Given the 29.4% renter density, it's evident that the market rent scenario offers a far more attractive gross yield compared to the FMR. However, the reality of operating under the Section 8 program must also be considered. The N/A-day Days on Market (DOM) suggests that properties participating in Section 8 might not face the same competitive pressures as those in the open market, potentially stabilizing occupancy rates despite the lower rent.
While the market rent of $19,836 per year provides a higher gross yield, the certainty of lease payments and stable occupancy rates offered by the Section 8 program at $1810 annually could be more appealing to some investors, especially those looking for long-term, predictable cash flows rather than immediate high returns. For small-portfolio investors, the reliability of Section 8 payments might outweigh the allure of a higher gross yield from market rents.
Ultimately, the choice between market rent and Section 8 participation depends on the investor's risk tolerance and financial goals. A gross yield of 5.52% is clearly superior to 0.50%, but the trade-offs in terms of tenant stability and administrative ease should also factor into the decision-making process.
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.