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 | $1,110 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $314,026 | 0.46% | F |
| 3BR | $1,990 | $397,530 | 0.5% | F |
| 4BR | $2,050 | $418,788 | 0.49% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for investing in Section 8 properties in ZIP code 12726, located in Lake Huntington, NY, are significant. Firstly, tenant turnover poses a notable challenge due to the disparity between the market rent of $938 and the Federal Market Rent (FMR) of $1,560 for fiscal year 2026 in the metropolitan area. This difference can lead to higher turnover rates as tenants might struggle to afford the higher FMR, impacting the stability of rental income.
Vacancy exposure is another concern. With no available data on the days on market (DOM), it's unclear how quickly units can be filled once they become vacant. A prolonged period of vacancy can result in lost rental income and increased costs associated with maintaining an empty property.
The deferred maintenance exposure is also substantial. Given that the typical home value in the area is $357,459 and the median income is $77,149, landlords must be prepared to invest in necessary repairs and upgrades without immediate financial returns. The lower median income suggests that residents may have limited funds to contribute towards maintenance, further increasing the burden on the landlord.
However, these risks are somewhat mitigated by the high renter density in the area. An 11.0% renter share indicates a robust demand for rental properties, which typically translates into a higher demand for Section 8 vouchers. This can ensure a steady stream of qualified tenants who are able to pay their portion of the rent through the voucher program.
In conclusion, the investment in Section 8 properties in ZIP code 12726 presents a moderate risk for a first-time landlord. While there are considerable challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers a strong counterbalance, ensuring a viable market for subsidized rentals.
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.