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 | $1,250 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $285,594 | 0.61% | D |
| 3BR | $2,060 | $326,434 | 0.63% | D |
| 4BR | $2,270 | $375,588 | 0.6% | D |
| 5BR | $2,633 | $410,633 | 0.64% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP code 12208, located in Albany, NY, within the Albany-Schenectady-Troy, NY MSA, does not favor landlords. The Fair Market Rent (FMR) set at $1,390 for fiscal year 2024 is notably lower than the market rent, which stands at $1,640 based on ZORI data. This discrepancy suggests that landlords receiving Section 8 subsidies will face challenges in covering market-level expenses.
Acquisition of properties in this area is moderately affordable. With a median home value of $317,867, potential investors can find homes within a reasonable budget. However, the lack of data on days on market (DOM) and the fact that only 0.1% of listings have been subject to price cuts indicate a stable but less dynamic market. This stability could mean fewer opportunities for significant discounts during property purchases.
Tenant demand in ZIP 12208 is strong, driven by a population of 23,289 residents, with 54.9% being renters. This high percentage of renters indicates a robust pool of potential tenants, particularly those seeking subsidized housing through Section 8 vouchers. Landlords should expect a steady flow of applications, though they must manage expectations regarding rent levels.
In summary, while there is ample tenant demand in ZIP 12208, the disparity between the Fair Market Rent and the actual market rent poses a challenge for landlords. The affordability of acquisitions is present but limited by the stability of the market, offering fewer chances for significant cost savings. For small-portfolio investors, the key consideration is balancing the guaranteed tenant base against the lower rent income from Section 8 subsidies compared to market rates.
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.