Section 8 Fair Market Rent (FMR) for ZIP 12180 - 2027

Investment Score for ZIP 12180

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,240
1 Bedroom	$1,420
2 Bedrooms	$1,710
3 Bedrooms	$2,040
4 Bedrooms	$2,250
5 Bedrooms	$2,610
6 Bedrooms	$2,923
7 Bedrooms	$3,157
8 Bedrooms	$3,315

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,710	$261,717	0.65%	D
3BR	$2,040	$314,109	0.65%	D
4BR	$2,250	$358,198	0.63%	D
5BR	$2,610	$389,374	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 12180 (Troy, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Troy, NY, as of 2026, is set at $1680 for a two-bedroom unit. This represents 26.6% of the median household income of $75,851. However, the actual median rent for a two-bedroom unit on Zillow is $247,712, which is significantly higher than the FMR. The price-to-FMR ratio is 12.3x, indicating that the actual rental prices are much higher than what is considered fair market rent by HUD standards. This disparity means that Section 8 voucher holders face significant constraints when trying to find housing. They would need to find landlords willing to accept the lower FMR rates, which can be challenging given the high actual rental prices. For example, a voucher holder with a two-bedroom unit would have a maximum allowable rent of $1680, while the typical market rate is over $247,712. This makes it difficult for voucher holders to secure housing without substantial subsidies or finding units below market value. #### Affordability & Renter Profile With a population of 53,479, Troy has a high renter percentage of 52.1%, suggesting a strong demand for rental properties. The occupancy rate stands at 86.2%, indicating that the majority of available units are occupied, further supporting the notion that the rental market is relatively tight. Given the median household income of $75,851, the FMR for a two-bedroom unit at $1680 is indeed affordable for many residents. However, the actual median rent of $247,712 is far beyond the affordability threshold for most renters, especially those relying on Section 8 vouchers. The high renter percentage and occupancy rate suggest that there is a competitive market for rental properties, particularly for those who can afford higher rents. For low-income households, the situation is more challenging due to the limited availability of units priced within their budget range. The gap between FMR and actual rents indicates that many residents may struggle to find affordable housing, leading to potential issues such as overcrowding or long commutes. #### Investor Angle From an investor perspective, the ZIP code 12180 presents a mixed picture. While the actual median rent for a two-bedroom unit is $247,712, the FMR is only $1680. This means that if an investor were to purchase a property and rent it out at the FMR, they would likely see negative cash flow. The price-to-FMR ratio of 12.3x underscores the fact that the investment would not be profitable based solely on the FMR. However, the high occupancy rate and renter percentage indicate a strong demand for rental properties. Investors could potentially target the broader rental market rather than focusing exclusively on Section 8 tenants. This would require securing tenants who can afford the higher market rates, but it also opens up opportunities for higher returns. The investment grade in this area would depend on the ability to attract tenants willing to pay above FMR rates. #### Specific Actionable Insights 1. **Focus on Market Rates**: Given the high price-to-FMR ratio, investors should focus on renting properties at market rates rather than FMR. A two-bedroom unit priced at $247,712 would provide a much better return on investment compared to the FMR of $1680. 2. **Consider Mixed-Income Developments**: To cater to both low-income and higher-income tenants, developers might consider creating mixed-income developments. These projects could include a mix of units rented at FMR and market rates, ensuring a balanced tenant base and stable cash flow. 3. **Utilize Local Housing Assistance Programs**: Investors could explore local housing assistance programs that offer additional subsidies or incentives for landlords who accept Section 8 vouchers. This could help bridge the gap between FMR and actual market rates, making it more feasible to rent to voucher holders. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **skip** this ZIP code. The actual rental prices far exceed the FMR, making it unprofitable to rent properties at the FMR rates. Instead, investors should consider areas where the FMR is closer to the actual rental prices or explore alternative strategies such as mixed-income developments or leveraging local housing assistance programs. In conclusion, while Troy, NY, has a robust rental market with high demand, the current dynamics make it less favorable for investors primarily interested in Section 8 vouchers. The focus should shift towards properties that can be rented at market rates to ensure profitability and sustainable cash flow.

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.