Location: Kiryas Joel-Poughkeepsie-Newburgh, 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 | $1,430 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $2,720 |
| 5 Bedrooms | $3,155 |
| 6 Bedrooms | $3,534 |
| 7 Bedrooms | $3,817 |
| 8 Bedrooms | $4,008 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,050 | $340,443 | 0.6% | D |
| 3BR | $2,580 | $414,003 | 0.62% | D |
| 4BR | $2,720 | $525,432 | 0.52% | F |
| 5BR | $3,155 | $539,019 | 0.59% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 12586 (Walden, NY) for Section 8, follow this decision tree based on the provided data.
1) Does the Fair Market Rent (FMR) of $1870 cover the debt service on a property valued at $413,577?
No: The FMR of $1870 does not sufficiently cover the debt service on a $413,577 property. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the high property value, these expenses would likely exceed the FMR, making it financially unfeasible to invest in this area for Section 8 without additional subsidies or income sources.
Yes: Proceed to the next question.
2) How does the market rent of $1,654 compare to the FMR?
Market rent is below FMR: The market rent of $1,654 is lower than the FMR of $1870. This indicates that Section 8 tenants can afford higher rents than what the market currently offers, potentially providing an opportunity to charge closer to the FMR and thus better cover your costs.
Market rent is equal to or above FMR: Since the market rent is below the FMR, this scenario does not apply here. However, if the market rent were equal to or above the FMR, it would suggest that the rental market is competitive and landlords might struggle to find tenants willing to pay the FMR.
3) Is there sufficient demand with 33.6% of residents being renters and N/A-day days on the market (DOM)?
It depends: With 33.6% of residents being renters, there is a notable portion of the population looking for housing. However, the lack of data on days on the market (DOM) makes it difficult to assess how quickly properties are rented out. To make a definitive decision, you would need to gather more information on the rental market's velocity in Walden, NY. If properties are rented quickly, this indicates strong demand; otherwise, it may be weak.
In conclusion, the FMR of $1870 is insufficient to cover the debt service on a $413,577 property in ZIP 12586. Additionally, the market rent of $1,654 is below the FMR, which could be advantageous for Section 8 landlords. However, the strength of the rental demand remains uncertain due to incomplete DOM data. Therefore, unless you can secure additional income sources or subsidies, purchasing a property in this ZIP code for Section 8 is not recommended without further investigation into the rental market's speed and overall health.
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.