Location: Kingston, NY | Metro: Kingston, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,390 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,630 |
| 5 Bedrooms | $3,051 |
| 6 Bedrooms | $3,417 |
| 7 Bedrooms | $3,690 |
| 8 Bedrooms | $3,875 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 12429 are governed by the Specific Area Fair Market Rent (SAFMR) which is set at $1870 for a two-bedroom apartment for the fiscal year 2024. This SAFMR is unique to this specific ZIP code, meaning it reflects the rental conditions and costs particular to the area.
When a landlord participates in the Section 8 program, they receive payments from the Housing Choice Voucher program on behalf of their tenants. The payment structure involves the tenant contributing a portion of the rent based on their income level, typically 30% of their adjusted income, while the government covers the remainder up to the SAFMR limit.
To illustrate, if a tenant's income dictates they should pay $561 towards the rent, the government would cover the difference between that amount and the SAFMR of $1870. Therefore, the government would pay $1309 ($1870 - $561).
Utility allowances are also factored into the equation but are separate from the base rent. These allowances vary but generally help cover electricity, gas, water, and sewer. For a two-bedroom unit, the utility allowance can range from $200 to $300 per month, depending on the local housing authority's guidelines.
In ZIP 12429, the local market rent data is currently unavailable. However, using the SAFMR as a benchmark, landlords can expect a consistent reimbursement rate. It's important to note that the reimbursement will never exceed the SAFMR of $1870, regardless of the actual market rent.
The reimbursement gap or surplus occurs when comparing the total voucher payment (tenant contribution plus government subsidy) to the actual market rent. In the absence of market rent data, we can only compare against the SAFMR. If the local market rent were higher than $1870, landlords would face a reimbursement gap, requiring them to either accept lower rent or seek additional tenants or income sources. Conversely, if the market rent were lower, landlords would experience a surplus, receiving more than the market might otherwise dictate.
Given the SAFMR of $1870, landlords must ensure that their two-bedroom units are priced accordingly to maximize participation in the program without facing financial shortfalls. Landlords should also be aware of the administrative aspects, including maintaining compliance with housing quality standards and managing the paperwork involved with the Housing Authority.
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.