Location: Sullivan County, NY | Metro: Sullivan County, NY
| 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 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 12742 reveals some interesting dynamics based on the provided data. The median home value in this area is $289,701, which serves as the base for calculating potential yields.
Firstly, let's consider the scenario with the annualized Fair Market Rent (FMR) for a two-bedroom apartment set at $1,290 per month, which is part of the fiscal year 2026 metro rate. This translates into an annual rental income of $15,480. To derive the implied gross yield, we divide the annual rental income by the median home value:
This indicates that if a property were rented out under the Section 8 program at the specified FMR, the investor would see a gross yield of approximately 5.34%. However, it's important to note that this calculation does not account for operating expenses, vacancy rates, or other costs typically factored into net operating income (NOI).
In contrast, the market rent figure is listed as N/A, suggesting either a lack of available data or significant variability in actual rents charged. Without a specific market rent, it's challenging to provide a precise gross yield comparison. However, given the context, it's reasonable to infer that market rents could potentially be higher than the FMR, leading to a higher gross yield for non-Section 8 rentals.
The renter density in ZIP 12742 is stated at 11.1%, indicating a relatively low proportion of renters compared to homeowners. This suggests that landlords might face competition from owner-occupied homes, which could impact the demand for rental properties and thus the realism of achieving higher market rents.
Furthermore, the Days on Market (DOM) is listed as N/A, which implies that there is insufficient data to determine how quickly properties are typically rented out in this area. This uncertainty around the DOM can affect the speed at which an investment generates returns and should be considered when evaluating the viability of different rental strategies.
Given these factors, the 5.34% gross yield derived from the Section 8 FMR appears to be a conservative estimate. While market rents might offer a higher gross yield, the specific figures needed to calculate this are not available, making the Section 8 scenario more concrete for investors looking to understand the baseline performance of rental properties in ZIP 12742.
Data Sources: FMR data from HUD (2027). 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.