Location: New York, NY | Metro: Kiryas Joel-Poughkeepsie-Newburgh, 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 | $2,280 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,620 | $378,395 | 0.69% | D |
| 3BR | $3,280 | $525,048 | 0.62% | D |
| 4BR | $3,570 | $739,121 | 0.48% | F |
| 5BR | $4,141 | $789,902 | 0.52% | F |
U.S. Census Bureau data (2024)
To decide whether to invest in ZIP 12533 (Hopewell Junction, NY) for Section 8 properties, follow these steps:
Step 1: Can the Fair Market Rent (FMR) of $2210 cover the debt service on a property valued at $572,111?
Yes. The FMR of $2210 is designed to ensure that it can cover the debt service on a property of this value. Landlords can expect that the rental income will be sufficient to meet mortgage payments and other financial obligations associated with the property.
No. This scenario would not typically occur given the FMR is set to accommodate such costs. However, if there are unusually high financing rates or additional unforeseen expenses, then further analysis is needed.
It Depends. If the landlord has specific financing terms or property management costs that differ from standard assumptions, they should calculate their exact debt service to confirm if the FMR covers it.
Step 2: How does the market rent ($1,933 ZORI) compare to the FMR?
Above. If the ZORI were higher than the FMR, it would indicate that the market is strong and landlords might consider investing even outside of Section 8. However, in this case, the ZORI is below the FMR, which brings us to the next point.
Below. With the ZORI at $1,933, which is below the FMR of $2210, landlords are likely to find that Section 8 tenants provide a more stable and potentially higher rental income compared to the general market. This makes ZIP 12533 attractive for Section 8 investments.
At. This situation does not apply since the ZORI is below the FMR. Landlords should focus on the higher guaranteed income from Section 8.
Step 3: Is there enough demand with 10.3% renters and N/A-day days on the market (DOM)?
Yes. Despite the low percentage of renters, the fact that the days on the market are not specified suggests that there is a steady demand for rental properties. The higher rental income from Section 8 can compensate for the lower overall rental rate.
No. If the days on the market were excessively high, it would indicate a weak rental market. However, since DOM is not specified, we cannot conclude this based on the available data.
It Depends. The 10.3% renters suggest a mixed market where some landlords might prefer to invest in owner-occupied properties. Yet, for those specifically targeting Section 8, the higher FMR compared to ZORI supports a positive outlook.
In conclusion, for landlords considering ZIP 12533 for Section 8 investments, the answers to the gating questions lean towards a positive decision, particularly due to the favorable comparison between FMR and ZORI.
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.