Location: Greene County, NY | Metro: Kingston, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,180 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 12477, which encompasses Saugerties, NY, in Ulster County, are driven by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment set at $1580 for fiscal year 2024. This SAFMR is specific to this ZIP code, reflecting the localized rental market conditions.
Contrastingly, the local market rent for a similar unit, as measured by ZORI (Zillow Observed Rent Index), stands at $2,450. This discrepancy highlights the difference between what the government deems fair for subsidized housing and the actual rents commanded in the private market.
When a landlord participates in the Section 8 program, they receive a voucher payment that covers part of the rent. The voucher amount is calculated based on the SAFMR and the tenant's ability to pay. Typically, the tenant contributes 30% of their adjusted income toward rent. If we assume an average adjusted income of $1800 per month for a tenant eligible for a Section 8 voucher, their contribution would be $540 ($1800 x 0.3).
The remaining balance is covered by the voucher, up to the SAFMR limit. In this case, the voucher would cover $1580 - $540 = $1040, making the total reimbursement $1040 + $540 = $1580. However, this calculation does not account for utility allowances, which can vary but generally add around $200 to $300 to the monthly reimbursement.
If we factor in a utility allowance of $250, the total reimbursement becomes $1580 + $250 = $1830. This figure represents the maximum amount a landlord could expect to receive under the Section 8 program for a two-bedroom unit in ZIP 12477.
To illustrate, consider a landlord renting a two-bedroom apartment for $2,450. With the tenant contributing $540 and the utility allowance adding $250, the landlord would receive $1830 from the voucher program. This leaves a gap of $2,450 - $1830 = $620 per month, which the landlord must absorb unless the tenant agrees to pay the difference.
In summary, the typical reimbursement gap for a two-bedroom apartment in ZIP 12477 is $620 per month, indicating that landlords may need to adjust their expectations when participating in the Section 8 program. Despite this shortfall, some landlords find value in the stability and support services provided by the program.
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.