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 | $1,390 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,920 | $287,251 | 0.67% | D |
| 3BR | $2,290 | $368,150 | 0.62% | D |
| 4BR | $2,520 | $499,985 | 0.5% | F |
| 5BR | $2,923 | $572,911 | 0.51% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 12309, located in Schenectady, NY, stands at $125,274. This figure provides a baseline understanding of the financial capacity of households in the area. However, when it comes to housing costs, the reality is quite different. The market rate rent, known as the Zillow Observed Rent Index (ZORI), for this region is $1,519 per month. To put this into context, the Federal Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1,540. This means that the voucher payment standard is slightly above the market rate, offering a potential advantage for landlords who accept vouchers.
With 18.3% of the 33,246 population being renters, there is a notable segment of the community looking for affordable housing options. The difference between the median income and the cost of renting highlights an affordability gap. A household earning the median income would have approximately $10,439 left over each month after paying rent at the market rate, assuming a typical budget allocation where housing costs should not exceed 30% of gross income. However, this leaves little room for other essential expenses such as food, healthcare, and transportation.
The fact that the FMR is higher than the ZORI suggests that voucher holders might find it easier to secure rental properties compared to those paying out-of-pocket. For landlords, this means that accepting Section 8 vouchers could be a viable strategy to ensure consistent and timely rent payments, especially given the slight premium offered by the voucher program. On the other hand, landlords who focus on cash-paying tenants might face increased competition as the pool of financially capable renters is limited.
Takeaway: Landlords in ZIP 12309 should consider the benefits of accepting Section 8 vouchers, including the potential for higher monthly payments and a more stable tenant base. While cash-paying tenants might offer a simpler leasing process, the affordability gap in the area could lead to prolonged vacancies if too many landlords reject vouchers. Balancing both strategies based on local demand and property value is key to maintaining a successful rental portfolio.
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.