Location: Otsego 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 | $1,100 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $175,057 | 0.88% | C |
| 3BR | $1,840 | $214,066 | 0.86% | C |
U.S. Census Bureau data (2024)
ZIP 12197, located in Worcester, NY, within the Otsego County, NY metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) and the current market rental rates.
The FMR for a one-bedroom apartment in the Otsego County, NY metro area for fiscal year 2026 is set at $1,340. In contrast, the current market rental rate for a similar unit in ZIP 12197 is $732. This means that landlords can potentially receive a higher subsidy payment from the Section 8 program compared to what they would typically charge in the open market, thereby securing steady and above-market rental income. The difference of $608 per month represents a substantial financial cushion that can help stabilize a landlord's overall cash flow, especially if other properties in their portfolio experience fluctuations in rental demand or income.
Additionally, the median home value in ZIP 12197 is $179,088, which suggests that property values are relatively stable and affordable. This makes it easier for landlords to acquire properties without incurring excessive capital costs, thus maximizing their potential for positive cash flow from the outset.
While the ZIP code has a renter share of 10.4%, indicating a moderate number of renters, and a median income of $77,778, suggesting a middle-class population, these factors do not significantly impact its role as a cash-flow anchor. The primary focus here is the guaranteed higher rental income through the Section 8 program, which compensates for any lower-than-average rental rates in the area.
In conclusion, ZIP 12197 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to the favorable spread between the FMR and the local market rental rates, ensuring a consistent and reliable income stream for landlords.
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.