Section 8 Fair Market Rent (FMR) for ZIP 12226 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,260
1 Bedroom	$1,450
2 Bedrooms	$1,740
3 Bedrooms	$2,070
4 Bedrooms	$2,290
5 Bedrooms	$2,656
6 Bedrooms	$2,975
7 Bedrooms	$3,213
8 Bedrooms	$3,374

Based on the available data, ZIP code 12226 in Albany, New York, presents a unique challenge for both renters and landlords. The median household income for ZIP 12226 is not reported, which suggests it may be below the reporting threshold or there isn't enough data to determine it accurately. However, comparing it to nearby areas, the lack of income data indicates that households here likely earn less than the median incomes in surrounding ZIP codes and the city of Albany itself, where the median income stands at $61,986. With the Fair Market Rent (FMR) standard set at $1390 for FY 2024, this represents a significant portion of the average household's budget if they are earning below the median income. For instance, if we assume a household income close to the city's median, the FMR would consume around 22% of their monthly income, which is already a considerable expense. If the actual income is lower, the proportion spent on rent increases, making it challenging for many households to afford market-rate rents. The demographic breakdown shows a diverse population, with a notable majority identifying as Black (62.17%). This diversity is reflected in the school district data, indicating a mix of racial and ethnic groups. The lack of higher income households—only 0.22% of households make over $200,000 annually—underscores the financial challenges faced by residents. Given these conditions, landlords in ZIP 12226 should consider the affordability gap when setting rents. Competition for tenants could be fierce, especially if market rates exceed what most households can comfortably pay. Voucher programs, which offer a guaranteed $1390 per month, can be a stable alternative to relying solely on cash-paying tenants who might struggle to meet higher rent demands.

The takeaway for landlords is clear: focusing on voucher tenants can provide a more reliable stream of income, given the economic realities of the area. While cash-paying tenants might offer higher rents, the risk of vacancy due to unaffordable rates is significant. Embracing the voucher program ensures a steady and predictable income source.

Data Sources: FMR data from HUD (2027).

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.