Location: Kingston, 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 | $371,491 | 0.44% | F |
| 3BR | $2,030 | $465,928 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 12464 (Phoenicia, NY) reveals an interesting contrast between the Federal Market Rent (FMR) and the actual market rent. Using the annualized 2BR FMR of $1760 for FY 2024, the implied gross yield for a property in this area would be approximately 0.46%. This is calculated by dividing the annual rent ($1760) by the median home value ($385,995).
In contrast, using the market rent figure of $970 per month from the Census ACS, the implied gross yield drops significantly to about 0.25%. This calculation is based on the same median home value, showing how much lower the actual market rent is compared to the FMR.
The gross yield derived from the FMR is higher, suggesting that properties receiving Section 8 payments could potentially generate better returns than those rented at market rates. However, the reality of the situation is more nuanced. With only 28.1% of the population being renters, the demand for rental properties, including those in the Section 8 program, is relatively low. This means that landlords might face challenges in filling units, especially if they rely solely on Section 8 tenants.
The N/A-day Days on Market (DOM) indicates that there isn't enough data to determine how long it typically takes to lease a property in this area. This lack of information can be a significant risk factor for investors considering entering the rental market in Phoenicia. It suggests that the leasing process could be unpredictable and potentially lengthy, affecting cash flow and investment returns.
Given these factors, while the gross yield based on the FMR is more attractive at 0.46%, the lower market rent gross yield of 0.25% might be more realistic. Landlords should consider the potential difficulty in finding and retaining tenants, as well as the time it may take to lease a property, when deciding whether to participate in the Section 8 program or aim for market rents. The decision should balance the desire for higher yields with the practical realities of the local rental market.
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.