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 | $1,410 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,450 | $363,439 | 0.4% | F |
| 2BR | $1,680 | $355,227 | 0.47% | F |
| 3BR | $2,050 | $432,803 | 0.47% | F |
| 4BR | $2,210 | $575,979 | 0.38% | F |
| 5BR | $2,564 | $843,724 | 0.3% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 12534 in Hudson, NY, provides a clear view of the investment potential for landlords and small-portfolio investors. To start, let's annualize the 2BR Fair Market Rent (FMR) and Zillow Observed Rent Index (ZORI).
The annualized FMR for a 2BR apartment is $18,720 ($1,560 x 12 months), based on the FY 2026 metro figure. The annualized market rent using ZORI is $30,156 ($2,513 x 12 months). Comparing these figures to the median home value of $428,597, we can derive the implied gross yields.
The implied gross yield for the Section 8 scenario is approximately 4.37%. This is calculated by dividing the annualized FMR of $18,720 by the median home value of $428,597. On the other hand, the implied gross yield for the market rent scenario is about 7.04%, derived from dividing the annualized market rent of $30,156 by the same median home value.
The significant difference between these two gross yields highlights the financial implications of choosing a Section 8 property over a market-rate rental property. Given that 36.4% of residents in Hudson, NY, are renters, it is important to consider the local rental market dynamics when deciding which path to take.
Despite the lack of available data on days on market (DOM), the higher gross yield from market rent suggests that it would be more financially beneficial for landlords and small-portfolio investors to aim for properties that can command market rates. However, the decision to participate in the Section 8 program should also consider factors such as the stability of government-backed rents and the potential for lower vacancy rates.
In conclusion, while the Section 8 cap rate offers an implied gross yield of 4.37%, significantly lower than the market rent's 7.04%, the choice between the two should be informed by a comprehensive understanding of the local rental environment and the investor's risk tolerance.
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.