Location: Kingston, NY | Metro: Kingston, 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 | $1,410 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,550 | $279,079 | 0.56% | F |
| 2BR | $2,030 | $331,451 | 0.61% | D |
| 3BR | $2,470 | $398,002 | 0.62% | D |
| 4BR | $2,670 | $506,241 | 0.53% | F |
| 5BR | $3,097 | $630,833 | 0.49% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 12401 in Kingston, NY, presents several challenges that must be carefully considered. Firstly, tenant turnover is a significant concern. The market rent for the area stands at $2,067, while the Fair Market Rent (FMR) for FY 2024 is set at $1,740. This discrepancy can lead to frequent changes in occupancy, as tenants who qualify for Section 8 may struggle to find other housing options that fit their budget once they leave the program. Additionally, the vacancy exposure is notable due to an average Days on Market (DOM) of 30 days, indicating that it takes a month for properties to fill up, which can result in lost rental income during that period.
The deferred maintenance exposure is another critical factor. With a typical home value of $380,921 and a median income of $69,305, homeowners may face financial strain when it comes to maintaining and updating their properties. This can lead to higher maintenance costs and potential delays in repairs, impacting the overall condition of the property and the satisfaction of tenants. Landlords should be prepared to invest in regular upkeep to ensure compliance with housing standards and to maintain the quality of the property.
However, these risks are tempered by the high concentration of renters in the area. The renter share in ZIP 12401 is 42.6%, which suggests a robust demand for rental housing, including those supported by Section 8 vouchers. A high renter density often translates into a steady stream of potential tenants, reducing the likelihood of prolonged vacancies. Furthermore, the strong presence of renters indicates a stable market, which can provide some assurance to landlords and small-portfolio investors.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.