Section 8 Fair Market Rent (FMR) for ZIP 12740 - 2027

Location: Sullivan County, NY | Metro: Kingston, NY MSA

Investment Score for ZIP 12740

D
Monthly Rent (2BR)
$1,640
Median Price (2BR)
$247,299
1% Rule
0.66%
Annual Yield
7.96%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,180
1 Bedroom$1,250
2 Bedrooms$1,640
3 Bedrooms$2,030
4 Bedrooms$2,170
5 Bedrooms$2,517
6 Bedrooms$2,819
7 Bedrooms$3,045
8 Bedrooms$3,197

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,640 $247,299 0.66% D
3BR $2,030 $321,136 0.63% D
4BR $2,170 $375,256 0.58% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
1,732
Median Household Income
$103,462
Housing Units
1,036
Renter Percentage
17.1%
Occupancy Rate
73.6%
Renter Occupied
130

Grahamsville, NY, located in ZIP code 12740, is a small, predominantly owner-occupied community with a total population of 1,732 residents. Only 17.1% of the inhabitants are renters, indicating a strong preference for homeownership among the locals. The median household income stands at a robust $103,462, which suggests that residents have substantial financial stability. Reflecting this economic strength, the median home value in the area is notably high at $286,230.

The rent economics in Grahamsville present an interesting contrast. According to the Census Bureau's American Community Survey (ACS), the market rent for the area is $871. However, the Fair Market Rent (FMR) for ZIP code 12740 as of the fiscal year 2024 is set significantly higher at $1880. This discrepancy implies that there is a potential opportunity for landlords who can attract tenants willing to pay closer to the FMR rates, possibly through value-added services or improvements.

Given these conditions, Grahamsville might not be the best fit for a hands-off voucher operator due to the relatively low market rent compared to the FMR. Instead, it could be more suitable for a hands-on value-add buyer who is willing to invest in property improvements to command rents closer to the FMR. Such an approach would likely yield better returns given the financial capacity of the local population and the existing high median home values.

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.