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 | $1,270 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $229,509 | 0.77% | D |
| 3BR | $2,100 | $316,254 | 0.66% | D |
| 4BR | $2,310 | $489,191 | 0.47% | F |
| 5BR | $2,680 | $704,329 | 0.38% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 12204, located in Menands, NY within Albany County and the larger Albany-Schenectady-Troy, NY MSA metro area, reveals several key insights. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for this zip code in fiscal year 2024 is $1420. In comparison, the market rent based on Census American Community Survey (ACS) data is $1343.
Voucher tenants in this area will generally cashflow at the HUD FMR rate, as it exceeds the average market rent by approximately $77 per month. This indicates that landlords can expect a positive cash flow when renting to Section 8 tenants, without the need to exclusively offer premium units. However, the actual cashflow will depend on the specific unit's condition and location within the zip code.
The median home value in ZIP 12204 is $342,366. Using the HUD FMR of $1420, we can calculate a rent-to-price ratio of approximately 0.41%, which suggests a relatively stable housing market. This ratio is derived by dividing the annualized rent ($1420 * 12 months) by the median home value. A low rent-to-price ratio typically indicates that the property values are high relative to rental income, which can be a positive sign for long-term investment stability.
Note that the median Days on Market (DOM) and the percentage of price cuts are not applicable in this context, as these metrics pertain more directly to the buying market rather than the rental market. However, the overall stability of the housing market in terms of property values supports a steady rental environment, making it a favorable area for both cashflow and long-term stability.
The strongest investor angle in ZIP 12204 is cashflow. With the HUD FMR exceeding the market rent and the median home value indicating a stable market, landlords can expect reliable income from Section 8 tenants while also benefiting from the area's inherent stability.
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.