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 | $1,600 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $2,790 |
| 4 Bedrooms | $3,020 |
| 5 Bedrooms | $3,503 |
| 6 Bedrooms | $3,923 |
| 7 Bedrooms | $4,237 |
| 8 Bedrooms | $4,449 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,790 | $461,856 | 0.6% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 12412 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the fiscal year 2024 is set at $1,540, while the market rent, according to recent data from Zillow, averages at $1,825. This indicates that the FMR is approximately $285 lower than the market rent, representing a 15.6% discount.
In this context, landlords and small-portfolio investors must understand the implications of accepting Section 8 tenants. Given that the FMR is lower than the market rent, landlords will receive a subsidy that covers the difference between the tenant's contribution and the FMR. However, the actual market rent being higher means that landlords could potentially earn more if they rented their properties without the Section 8 program.
The decision to accept Section 8 tenants should be anchored in broader economic factors. With a median home value of $420,560 and a median income of $82,195, it is clear that the area is relatively affluent. Yet, only 6.6% of residents are renters, indicating a smaller pool of potential tenants. Therefore, the Section 8 program can act as a stabilizing factor for rental yields, ensuring steady income even when market rents fluctuate.
However, landlords must also consider the administrative burden and potential delays in receiving rent subsidies. Additionally, the lower FMR compared to the market rent suggests that voucher tenants might not cover the full cost of renting at market rates, thus impacting overall profitability.
To summarize, the gap between FMR and market rent in ZIP 12412 makes it a yield play for landlords willing to manage the intricacies of the Section 8 program. While it ensures stable occupancy and income, it comes with the trade-off of receiving less than the market rate.
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.