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 | $1,370 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,900 | $261,510 | 0.73% | D |
| 3BR | $2,260 | $337,539 | 0.67% | D |
| 4BR | $2,500 | $388,734 | 0.64% | D |
| 5BR | $2,900 | $427,261 | 0.68% | D |
U.S. Census Bureau data (2024)
The ZIP code 12205 in Albany, NY, presents an interesting balance between yield and stability. With a Fair Market Rent (FMR) of $1,500 for the fiscal year 2024, it falls below the market rent of $1,787, indicating a modest potential for rental income above the subsidized rate. However, the median home value of $325,994 suggests significant equity appreciation opportunities for those considering property flips.
On the stability axis, the data paints a picture of a somewhat stable market. The ZIP code has 28.6% of its population renting, which is a substantial portion but not excessively high. The lack of available data on days on market (DOM) could indicate that properties either sell quickly or there isn't much turnover, which can be interpreted positively as a sign of market confidence. Additionally, the average household income of $91,020 provides a reasonable assurance that tenants can afford their rent payments.
To classify 12205, it leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. While the potential for higher yields exists through market rents exceeding FMR, the presence of a significant number of renters and moderate income levels suggest a reliable tenant base. This makes it more suitable for landlords looking for consistent cash flow rather than quick flips for capital gains. The key figures driving this assessment are the FMR of $1,500, the market rent of $1,787, and the average income of $91,020, which collectively point towards a balanced investment opportunity with predictable returns.
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.