Location: Sullivan County, NY | Metro: Sullivan 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 | $1,010 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $246,444 | 0.53% | F |
| 3BR | $1,800 | $289,402 | 0.62% | D |
| 4BR | $1,830 | $355,619 | 0.51% | F |
| 5BR | $2,123 | $487,904 | 0.44% | F |
U.S. Census Bureau data (2024)
63.8% of residents in ZIP 12701 (Monticello, NY) are renters, indicating a strong demand for rental properties in the area. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,290, which represents the upper limit for Section 8 payments. In comparison, the market rent, measured by Zillow's ZORI, stands at $1,850, suggesting that landlords could potentially charge significantly higher rents than the Section 8 rate. However, it's important to note that the median income in Monticello is $57,222, which is lower than the national average, meaning many tenants might qualify for assistance programs like Section 8.
The median home value in the area is $272,492, reflecting a relatively stable housing market. With only 0.1% of listings experiencing a price cut, this indicates that the real estate market in Monticello is robust, with minimal pressure on property values. Despite the high market rent, the low percentage of price cuts shows that the local economy supports rental pricing above the FMR.
For landlords and small-portfolio investors, the data suggests that while there is a significant gap between the FMR and market rent, the local economic conditions and the high renter share make the area attractive for investment. The stable home values and low price-cut share point towards a reliable and growing rental market.
A final verdict on Section 8 participation in Monticello, NY: Given the substantial difference between the FMR ($1,290) and the market rent ($1,850), landlords should carefully weigh the benefits of guaranteed rental income against the potential administrative burdens of participating in the program.
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.