Location: Kingston, NY | Metro: Kingston, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,520 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,650 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 12417 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 12417 is set at $1740 per month for a standard unit. However, the current market rent for a similar unit is $1530, as indicated by recent data from HUD. This means that the FMR exceeds the market rent by $210, or approximately 13.7%.
This discrepancy is crucial for landlords and small-portfolio investors. Despite the lower market rent, accepting Section 8 tenants can be a yield play due to the guaranteed payment structure. The government ensures that the difference between the FMR and the actual rent is covered, making it financially viable even when the market rent is below the FMR. In ZIP 12417, where only 1.1% of residents are renters, landlords can leverage the Section 8 program to secure stable income without the risk of vacancy or delinquency.
However, the cost of housing voucher tenants below open-market rates must also be considered. With a median household income of $120,417, the area has a relatively high economic standing. This suggests that landlords might miss out on higher rents if they exclusively cater to Section 8 tenants. Additionally, the lack of data on median home values indicates an imbalance in the real estate market, possibly favoring rental properties over homeownership.
To summarize, the gap between FMR and market rent in ZIP 12417 presents both opportunities and challenges. Landlords should weigh the benefits of steady income against the potential for higher yields in the open market.
Data Sources: FMR data from HUD (2027). 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.