Location: Kingston, NY | Metro: Kingston, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,520 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,640 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP 12493 in West Park, NY, is based on the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 12493 in fiscal year 2024 is set at $2010. However, the market rent for similar properties is currently unreported, which suggests that the FMR might be significantly lower than the actual market rate.
In ZIP 12493, only 12.6% of residents are renters, indicating a relatively low demand for rental properties. The median home value in this area is $527,583, and the median household income is $105,617. These figures suggest that homeownership is prevalent among residents, and they have the financial capability to afford higher rents.
If the market rent exceeds the FMR, landlords accepting Section 8 vouchers would be renting their units below the open-market rates. This scenario can be costly for landlords, as it implies a reduction in potential rental income. For instance, if the market rent for a comparable unit is $2500, the landlord would be losing $490 per month, or approximately 19.6%, on each Section 8 tenant. This makes Section 8 properties less attractive for yield-focused investors.
To conclude, the gap between the FMR and the market rent in ZIP 12493 is likely substantial, leading to a situation where landlords accepting Section 8 vouchers face significant financial losses. This analysis is anchored in the local context, where only a small portion of the population rents, and the median income supports higher rental rates.
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.