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 | $1,180 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $247,808 | 0.66% | D |
| 3BR | $1,940 | $304,161 | 0.64% | D |
| 4BR | $2,140 | $381,850 | 0.56% | F |
| 5BR | $2,482 | $388,414 | 0.64% | D |
U.S. Census Bureau data (2024)
Schenectady, NY's ZIP code 12306 is characterized by a moderate-sized population of 27,865 residents, with nearly one-third (31.4%) being renters. The area boasts a median household income of $83,202, placing it above the national average. Median home values stand at $289,003, indicating a relatively stable and middle-class neighborhood.
The economic landscape for rental properties in 12306 is particularly interesting. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,260, which is significantly lower than the actual market rent of $1,648 as measured by Zillow's ZORI index. This gap suggests that landlords can potentially benefit from higher rental yields compared to the subsidized rates offered through the Section 8 program.
Given these conditions, ZIP 12306 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the lower FMR rate ensures a steady stream of income without the need for active property management. On the other hand, for those interested in value-add strategies, the discrepancy between FMR and market rents presents an opportunity to increase property values and rental income over time. Landlords should consider the balance between the stability offered by Section 8 tenants and the potential for higher returns by attracting market-rate renters.
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.