Section 8 Fair Market Rent (FMR) for ZIP 12538 - 2027

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

Investment Score for ZIP 12538

F
Monthly Rent (2BR)
$1,790
Median Price (2BR)
$358,553
1% Rule
0.5%
Annual Yield
5.99%

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$1,230
1 Bedroom$1,400
2 Bedrooms$1,790
3 Bedrooms$2,260
4 Bedrooms$2,430
5 Bedrooms$2,819
6 Bedrooms$3,157
7 Bedrooms$3,410
8 Bedrooms$3,581

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 $1,790 $358,553 0.5% F
3BR $2,260 $428,449 0.53% F
4BR $2,430 $481,700 0.5% F
5BR $2,819 $577,501 0.49% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
14,391
Median Household Income
$86,230
Housing Units
5,625
Renter Percentage
33.6%
Occupancy Rate
95.4%
Renter Occupied
1,802

The median income in ZIP code 12538, which covers Hyde Park, NY, stands at $86,230. At first glance, this figure suggests that residents have a decent earning capacity. However, when compared to the local market rate for rent, the picture becomes less rosy. The Census American Community Survey (ACS) reports a market rate of $1,232 per month for housing units. This amount represents a significant portion of an average household's monthly budget, considering that it would consume approximately 1,232 / (86,230 / 12) = 17.1% of their pre-tax earnings.

To put this into perspective, let’s consider the federal payment standard for Section 8 vouchers. For ZIP code 12538 in fiscal year 2024, the Fair Market Rent (FMR) is set at $1,470. This means that landlords who accept Section 8 vouchers can receive higher payments than the typical market rate. The difference between the voucher payment and the market rate is $1,470 - $1,232 = $238 per month, which could be a considerable incentive for landlords.

Given that 33.6% of the population are renters, there is a notable segment of the community looking for affordable housing options. With a total population of 14,391, this translates to around 4,845 individuals living in rental properties. The affordability gap between the median income and both the market rate and voucher payment standards highlights a potential challenge for landlords: competing for tenants who can afford the market rate versus those relying on government assistance.

The takeaway for landlords is clear. Accepting Section 8 vouchers can provide a stable source of income that exceeds the current market rate. This strategy can help attract and retain tenants, especially in a competitive environment where many households face financial constraints. Landlords should weigh the benefits of higher guaranteed payments against any perceived drawbacks, such as administrative complexity or stigma associated with vouchers. In ZIP code 12538, the financial advantage of $238 per month makes voucher acceptance a compelling option for securing reliable rental income.

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.