Location: Columbia County, NY | Metro: Columbia County, NY
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 | $1,160 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,700 | $520,335 | 0.33% | F |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap rates for ZIP code 12517 reveals a nuanced picture for potential investors. Based on the Fair Market Rent (FMR) for a two-bedroom unit set at $1,310 annually for fiscal year 2026, the implied gross yield can be calculated. Given the median home value of $471,856, let's break down the scenarios.
First, using the annualized FMR of $1,310, the gross yield is calculated as follows:
This figure represents the income generated from Section 8 housing as a percentage of the median home value. However, this scenario assumes that the property is rented out solely through the Section 8 program, which might not reflect the entire rental market dynamics.
Second, considering the market rent is not available (N/A), it's impossible to provide an exact gross yield for the non-Section 8 scenario. Yet, it's important to note that the absence of market rent data could indicate a lack of comparable properties or a highly specialized market segment.
Given the 15.7% renter density in ZIP 12517, it suggests that a significant portion of the population owns their homes rather than renting. This low renter density implies that finding tenants who qualify for Section 8 housing might be challenging, potentially making the 0.28% gross yield less realistic compared to what might be achieved through market rents.
The Days on Market (DOM) figure is also not available, which typically indicates how quickly properties are rented out. Without this information, it's difficult to assess the speed at which an investor could expect to fill vacancies, though it's reasonable to infer that a lower renter density could result in longer vacancy periods.
In conclusion, while the Section 8 scenario provides a clear gross yield of 0.28%, the absence of market rent data and the low renter density in ZIP 12517 suggest that achieving this yield might be less straightforward than initially appears. Investors should consider these factors when evaluating the potential returns from properties in this 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.