Location: Kingston, NY | Metro: Kingston, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,310 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 12448 reveals a stark contrast between government-subsidized rental income and market-driven rental income. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area, as set by HUD for FY 2024, is $1700 per month. Annualizing this figure, we arrive at an annual rental income of $20,400.
Given the median home value in ZIP 12448 is $595,987, the implied gross yield for a property receiving Section 8 subsidies would be approximately 3.42%. This calculation is derived by dividing the annual rental income by the median home value: $20,400 / $595,987 = 0.0342 or 3.42%.
Unfortunately, the market rent for 2-bedroom apartments in ZIP 12448 is not available, making it impossible to provide an exact comparison. However, it's important to note that the market rent typically exceeds the FMR, often significantly. If market rents were known and higher, the gross yield would naturally be greater than the Section 8 scenario.
The 0.0% renter density indicates that very few residents in ZIP 12448 rely on rental assistance programs, such as Section 8. This low density suggests that there might be limited demand for Section 8 properties, potentially leading to longer vacancy periods. With the days on market (DOM) being listed as N/A, it's unclear how long it takes for a property to find a tenant under these conditions, but the lack of data implies either insufficient listings or a highly specialized market.
In conclusion, while the Section 8 program provides a stable, if modest, gross yield of 3.42%, the absence of market rent data makes it difficult to assess the potential upside of renting without subsidies. Landlords and small-portfolio investors should consider the low renter density and the unknown market dynamics before committing to Section 8 participation in ZIP 12448.
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.