Location: Greene County, NY | Metro: Albany-Schenectady-Troy, 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 | $1,150 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $259,857 | 0.61% | D |
| 3BR | $1,920 | $337,038 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 12469, Preston Hollow, NY, reveals two distinct scenarios based on the available data. The first scenario uses the Fair Market Rent (FMR) for a 2-bedroom unit, which is set at $1190 annually for FY 2024. The second scenario relies on the market rent, which is unfortunately not available for this area.
To derive the gross yield, we need to consider the median home value in the area, which stands at $287,549. For the first scenario, using the FMR of $1190 per month, the annual rental income would be $14,280. This translates into a gross yield of approximately 4.97% when calculated against the median home value. The formula used here is: Gross Yield = (Annual Rental Income / Median Home Value) * 100.
In the absence of market rent data, the FMR provides a conservative estimate of potential rental income. However, it's important to note that the FMR is often lower than the actual market rent, especially in areas where demand exceeds supply. Given the 5.2% renter density in Preston Hollow, it's likely that the actual market rent could be higher, potentially offering a better gross yield for landlords and small-portfolio investors.
The lack of data on the Days on Market (DOM) further complicates the analysis. A high DOM could indicate a challenging leasing environment, which might affect the overall profitability. Conversely, a low DOM suggests strong demand and ease in finding tenants, which can positively influence the gross yield.
Based on the available data, the FMR implies a gross yield of 4.97%, but this is likely an underestimate. Landlords should expect the actual gross yield to be higher, depending on the true market rent. The 5.2% renter density suggests that there is a steady, if modest, pool of potential tenants, which supports the use of FMR as a baseline for analysis.
Given the limitations of the data, investors should focus on understanding local market conditions and possibly consult local real estate agents or property managers for more accurate market rent figures. This will allow them to make a more informed decision about the potential returns on investment in the Preston Hollow area.
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.