Section 8 Fair Market Rent (FMR) for ZIP 12518 - 2027

Location: Kiryas Joel-Poughkeepsie-Newburgh, NY | Metro: Kiryas Joel-Poughkeepsie-Newburgh, NY MSA

Investment Score for ZIP 12518

Monthly Rent (2BR)

$2,320

Median Price (2BR)

$368,201

1% Rule

0.63%

Annual Yield

7.56%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,620
1 Bedroom	$1,810
2 Bedrooms	$2,320
3 Bedrooms	$2,920
4 Bedrooms	$3,070
5 Bedrooms	$3,561
6 Bedrooms	$3,988
7 Bedrooms	$4,307
8 Bedrooms	$4,522

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,320	$368,201	0.63%	D
3BR	$2,920	$493,515	0.59%	F
4BR	$3,070	$682,592	0.45%	F
5BR	$3,561	$789,975	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

6,114

Median Household Income

$101,208

Housing Units

2,644

Renter Percentage

31.9%

Occupancy Rate

94.0%

Renter Occupied

793

To decide whether you should buy in ZIP 12518 (Cornwall, NY) for Section 8 investments, follow these steps:

Step 1: Determine if the Fair Market Rent (FMR) of $2,070 can cover the debt service on a property priced at $527,856.

Yes: If the $2,070 FMR can cover the debt service, proceed to Step 2.
No: If the $2,070 FMR cannot cover the debt service, do not invest in this ZIP code.

Step 2: Compare the market rent of $1,819 (as per Census ACS data) to the FMR.

Market Rent Above FMR: If the market rent exceeds $2,070, this indicates strong rental demand and higher potential returns beyond Section 8 limits. Consider investing.
Market Rent At FMR: If the market rent equals $2,070, this means that the rental income will be exactly at the FMR threshold, which is acceptable but offers no margin for error. Proceed cautiously.
Market Rent Below FMR: If the market rent is below $2,070, the risk of over-relying on Section 8 tenants increases. Evaluate further before making a decision.

Step 3: Assess the rental demand based on the percentage of renters (31.9%) and the days on market (DOM).

It Depends: With 31.9% of residents being renters, there is a moderate level of demand. However, the absence of DOM data makes it difficult to assess how quickly properties are rented out. If you can secure additional information about DOM, use it to refine your decision. If DOM is low, indicating quick rentals, then the moderate demand is sufficient. If DOM is high, indicating slower rentals, consider the risks before proceeding.

In summary, if the FMR of $2,070 covers the debt service and market rents are at least at this level, with DOM indicating quick rentals, then you should consider investing in ZIP 12518 for Section 8 properties. If any of these criteria are not met, the investment may not be advisable.

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.