Location: Albany-Schenectady-Troy, NY | Metro: Albany-Schenectady-Troy, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
U.S. Census Bureau data (2024)
The ZIP code 12305, located within the Albany-Schenectady-Troy, NY MSA, can serve as a cash-flow anchor in a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) and the local market rent. For fiscal year 2024, the FMR for ZIP 12305 is set at $1190, while the market rent stands at $1312. This $122 difference represents a solid margin that can be leveraged to ensure consistent cash flow.
The median home value in ZIP 12305 is $281,376, which is relatively low compared to the broader metropolitan area. This makes it an attractive option for investors looking to minimize their initial capital outlay while still securing properties in a stable region. The lower home values also indicate that there is a substantial population of renters who benefit from the affordability of the area, making it an ideal location for rental properties.
While appreciation plays typically require a high price-cut share and low days on market (DOM), these metrics are currently unavailable for ZIP 12305. However, the area's strong renter share of 85.4% and median income of $53,326 suggest that the demand for rental housing is robust. This high renter share implies that there are fewer homeowners, creating a larger pool of potential tenants for Section 8 properties. Additionally, the median income figure supports the notion that many residents rely on government assistance for housing, further solidifying ZIP 12305's role as a cash-flow anchor.
In summary, ZIP 12305 is best suited as a cash-flow anchor within a Section 8 portfolio due to its favorable rent differential and strong tenant base. The area's lower home values and high renter share make it an excellent choice for landlords and small-portfolio investors seeking steady returns.
Data Sources: FMR data from HUD (2027). 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.