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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $289,869 | 0.57% | F |
| 3BR | $2,030 | $368,854 | 0.55% | F |
| 4BR | $2,170 | $462,986 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,350 for ZIP 12455 (Margaretville, NY) in fiscal year 2024 can cover the mortgage on a $324,604 home. To address this, let's consider the typical mortgage rates and terms. A 30-year fixed-rate mortgage at an average rate of 4.5% would result in a monthly payment of approximately $1,575. This means that the FMR falls short by around $225 per month. However, it's important to note that this calculation does not include property taxes, insurance, and maintenance costs, which can further reduce the profitability.
The investor might also be concerned about the low rental demand at 18.1%. According to recent housing market data for ZIP 12455, the rental demand is relatively stable but not exceptionally high. The median rent in Margaretville is approximately $1,458 per month, indicating that there is some demand for rental properties. However, the percentage of 18.1% suggests that the majority of residents own their homes rather than renting. This could mean that competition among landlords is higher, but it also implies a potentially steady market due to the homeownership rate.
Another objection could be whether the voucher program will keep pace with market rents of $986. While the data does not provide a direct comparison between the voucher amount and market rents, historical trends suggest that voucher programs often lag behind market increases. In Margaretville, the gap between the market rent and the voucher amount is significant, at $472 per month. This discrepancy could pose challenges for landlords relying solely on vouchers to cover rental costs. However, it's worth noting that voucher holders often have additional income sources that can help bridge this gap.
In summary, while the FMR of $1,350 may not fully cover the mortgage on a $324,604 home, there is still a modest rental market with median rents of $1,458. The voucher program, at $986, does not keep pace with market rents but can be supplemented by other income sources from tenants. These points should be carefully considered before investing in Margaretville, NY.
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.