Section 8 Fair Market Rent (FMR) for ZIP 12198 - 2027

Location: Albany-Schenectady-Troy, NY | Metro: Albany-Schenectady-Troy, NY MSA

Investment Score for ZIP 12198

D
Monthly Rent (2BR)
$1,610
Median Price (2BR)
$260,714
1% Rule
0.62%
Annual Yield
7.41%

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$1,160
1 Bedroom$1,340
2 Bedrooms$1,610
3 Bedrooms$1,920
4 Bedrooms$2,120
5 Bedrooms$2,459
6 Bedrooms$2,754
7 Bedrooms$2,974
8 Bedrooms$3,123

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,610 $260,714 0.62% D
3BR $1,920 $347,142 0.55% F
4BR $2,120 $455,051 0.47% F
5BR $2,459 $479,401 0.51% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
6,796
Median Household Income
$113,083
Housing Units
3,017
Renter Percentage
19.7%
Occupancy Rate
92.8%
Renter Occupied
551

The economics of Section 8 housing in ZIP 12198, Wynantskill, NY, are defined by the SAFMR (Small Area Fair Market Rent) rates set specifically for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is $1190. This figure represents the maximum amount that the government will pay towards the rent for a unit deemed suitable under the program.

The local market rent for a two-bedroom apartment in Wynantskill, as per Census ACS data, stands at $1,216. This indicates that the market slightly exceeds the SAFMR, leaving a potential shortfall for landlords who participate in the Section 8 program.

A landlord must understand that the total reimbursement from a Section 8 voucher includes both the tenant's contribution and the utility allowance. The tenant typically pays 30% of their adjusted income toward rent. If the average income of a tenant in this area is considered, let's assume it is $1,500. Thus, the tenant would contribute approximately $450 ($1,500 * 0.30).

The utility allowance varies but is generally around $200-$300 per month. For simplicity, we'll use an average utility allowance of $250. Therefore, the total reimbursement a landlord can expect from a Section 8 voucher for a two-bedroom unit would be the sum of the SAFMR and the utility allowance: $1190 + $250 = $1440.

This reimbursement is split between the government subsidy and the tenant's payment. In our example, the landlord receives $1190 from the government and $450 from the tenant, totaling $1640. However, this calculation is illustrative; the actual tenant contribution depends on their individual income.

To summarize the financial impact, if the market rent is $1,216 and the total reimbursement is $1640, there is a surplus of $424 for the landlord. Conversely, if the market rent is higher than $1,216, there could be a gap where the landlord does not receive the full market value for the rental property.

In ZIP 12198, landlords should anticipate a slight surplus when renting a two-bedroom apartment to a Section 8 participant, given the SAFMR and typical market conditions. This surplus can be a deciding factor for landlords considering participation in the program.

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.