Location: Kingston, NY | Metro: Kingston, 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 | $1,500 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,150 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,640 | $234,842 | 0.7% | D |
| 2BR | $2,150 | $407,798 | 0.53% | F |
| 3BR | $2,610 | $535,862 | 0.49% | F |
| 4BR | $2,830 | $677,600 | 0.42% | F |
| 5BR | $3,283 | $697,716 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 12561 encompasses parts of New Paltz, NY, a town known for its vibrant community and natural beauty. With a total population of 19,830, it has a significant rental market, with 42.8% of residents being renters. The median household income in this area stands at $92,288, indicating a middle-class to upper-middle-class demographic. The median home value is notably high at $522,834, reflecting the overall cost of living and property values in the region.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 12561 for fiscal year 2024 is set at $1,970. This figure is higher than the average market rent of $1,614, based on recent Census American Community Survey (ACS) data. This discrepancy suggests that there could be opportunities for landlords to increase their rents closer to the FMR without losing tenants, given the area's economic profile.
Considering the practical aspects for investors, ZIP 12561 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to market rent means that properties participating in the Section 8 program can provide stable cash flows with minimal tenant turnover. For those looking to actively manage and improve their properties, the potential to raise rents above the current market level offers a chance to recoup investments quickly. Moreover, the relatively high median income and home values indicate a strong local economy that supports property appreciation and rental growth over time.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.