Location: Sullivan 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $242,103 | 0.68% | D |
| 3BR | $2,030 | $307,741 | 0.66% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 housing in ZIP code 12458, located in Napanoch, NY, include significant tenant turnover due to the discrepancy between the market rent of $1,393 and the Fair Market Rent (FMR) set at $1,350 for fiscal year 2024. This difference can lead to frequent changes in tenants, which can be costly and time-consuming for landlords. Additionally, the area faces a substantial risk of vacancy exposure, as the days on market (DOM) data is not available, indicating an uncertain rental market. The typical home value in the area is $282,140, while the median household income is only $64,851, suggesting that many residents may struggle to afford necessary maintenance, leading to potential deferred-maintenance issues.
Despite these challenges, there are mitigating factors that make the investment more appealing. The renter share in the area is 16.4%, which is relatively high. A higher percentage of renters typically translates into greater demand for housing vouchers, thereby stabilizing the occupancy rate and ensuring a steady stream of income for landlords participating in the Section 8 program.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.