Location: Delaware County, 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 | $1,180 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $233,073 | 0.7% | D |
| 3BR | $2,030 | $293,178 | 0.69% | D |
U.S. Census Bureau data (2024)
ZIP 12406, located in Arkville, NY within the Delaware County, NY metro area, offers a strategic opportunity for inclusion in a Section 8 portfolio. This ZIP code stands out as a cash-flow anchor. The Federal Market Rent (FMR) for a one-bedroom unit in ZIP 12406 for fiscal year 2024 is set at $1350, significantly above the local market rate of $850. This spread ensures that properties in this area can generate a consistent and reliable cash flow, which is crucial for maintaining financial stability in an investment portfolio.
The median home value in ZIP 12406 is $250,057, indicating that property values are moderate compared to other areas in the county. However, the primary focus for a Section 8 portfolio is on rental income rather than property appreciation. Given the lack of available data on price-cut shares and days on market (DOM), it is difficult to assess this ZIP code as an appreciation play. Nonetheless, the strong cash flow potential makes it a valuable addition to a Section 8 portfolio.
ZIP 12406 also has a 20.8% renter share, which means a considerable portion of the population is already renting. With a median income of $71,208, there is sufficient economic activity to support the demand for rental housing. This demographic characteristic supports the viability of the cash-flow anchor strategy, as it indicates a stable tenant base capable of meeting their rental obligations under the Section 8 program.
In summary, ZIP 12406 is best suited as a cash-flow anchor within a Section 8 portfolio due to the substantial difference between the FMR and the local market rate, ensuring steady and predictable returns. The moderate property values and existing rental market further reinforce this strategy, making it a solid choice for landlords and small-portfolio investors seeking reliable income streams.
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.