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 | $1,140 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,580 | $217,327 | 0.73% | D |
| 3BR | $1,880 | $257,412 | 0.73% | D |
| 4BR | $2,080 | $282,991 | 0.74% | D |
| 5BR | $2,413 | $333,965 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 12308, located in Schenectady, NY, within Schenectady County, can be broken down clearly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1270. This means that the maximum amount the government will pay under a Section 8 voucher program for a 2BR unit in this area is $1270 per month. However, the local market rent for a similar unit, as measured by ZORI (Zillow Observed Rent Index), is $1361.
A landlord might wonder how much they would receive if a tenant uses a Section 8 voucher. The reimbursement structure works as follows: the tenant is required to contribute 30% of their adjusted income towards rent, which is then supplemented by the government to cover the rest up to the SAFMR limit. If a tenant's portion is less than the difference between the SAFMR and the actual rent, the landlord receives the tenant's contribution plus the government subsidy. For instance, if the tenant contributes $381 (which is 30% of an income of $1270), the landlord would receive this amount plus the government subsidy, totaling $1270. If the local market rent exceeds the SAFMR, the landlord does not receive the full market rent; they only get up to the SAFMR limit.
In addition to the rent payment, the Section 8 program also provides utility allowances. These allowances vary but typically cover a portion of the tenant's heating, cooling, electricity, and water costs. The exact amount depends on the season and the specific needs of the household, but it can add an additional $200-$300 to the landlord's monthly income.
To summarize, in ZIP 12308, landlords participating in the Section 8 program for a two-bedroom unit can expect a total reimbursement of around $1270 per month, including any applicable utility allowances. Given the local market rent of $1361, there is a reimbursement gap of $91 per month. This means landlords would need to adjust their expectations and possibly lower their rental rates to participate effectively in the program without incurring losses.
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.