Location: Kiryas Joel-Poughkeepsie-Newburgh, NY | Metro: Kiryas Joel-Poughkeepsie-Newburgh, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,510 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,170 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
The Fair Market Rent (FMR) for ZIP 12552 in 2024 is set at $1860. This figure raises several concerns for landlords and small-portfolio investors. Let's address these objections directly.
Will FMR $1860 cover the mortgage on a home? The median assessed value for homes in this zip code is $307,000, according to recent data. To determine if the FMR can cover a mortgage, consider the average monthly mortgage payment. A $307,000 home with a 20% down payment would have a principal amount of approximately $245,600. Assuming a 30-year fixed-rate mortgage at an interest rate of 5%, the monthly mortgage payment would be around $1,300. Thus, the FMR of $1860 can indeed cover the mortgage, leaving a buffer for other expenses such as maintenance and taxes.
Is there enough renter demand at 12552? The median household income in ZIP 12552 is $100,168. This suggests that there is a substantial middle-class presence, which typically indicates a steady demand for rental properties. However, the data does not provide specific figures on the number of renters or vacancy rates, making it difficult to quantify the exact level of demand. Nonetheless, given the income levels, it is reasonable to assume that there will be sufficient demand for well-managed rental units.
Will vouchers keep pace with market rents? While the FMR is set at $1860, the actual market rents could vary. The median home value is $274,100, which is lower than the median assessed value. This implies that the market rents might also be slightly lower. However, voucher amounts are often adjusted based on local market conditions. If the market rents remain close to the FMR, then vouchers should adequately cover the rent. Yet, without specific data on voucher amounts, it is challenging to definitively state whether they will keep pace with market rents.
In summary, the FMR of $1860 is likely sufficient to cover the mortgage on a typical home in ZIP 12552. There appears to be a stable demand for rentals, supported by the median household income. However, the alignment of voucher amounts with market rents remains uncertain due to the lack of detailed data on voucher distribution and adjustments.
Data Sources: FMR data from HUD (2027).
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.