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 | $1,080 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,950 | $447,928 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 12743 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover is a significant concern due to the discrepancy between the market rent and the Federal Market Rent (FMR) set at $1,540 for FY 2026 in the metropolitan area. This gap can lead to higher turnover rates as tenants might seek more affordable housing options outside the program.
Vacancy exposure is another critical issue. The average days on market (DOM) is not available, which makes it difficult to predict how long a property might remain vacant. However, given the typical home value of $405,507 and a median income of $86,053, the financial cushion for landlords is relatively thin if they face prolonged vacancies. This combination suggests that landlords need to be prepared for potential cash flow disruptions.
Deferred maintenance is also a risk factor. With a median income that is lower than the cost of maintaining a home valued at $405,507, there is a likelihood that tenants will struggle to keep up with necessary repairs and upkeep, placing the burden on the landlord. The financial strain of these maintenance costs could be considerable, especially if the landlord has multiple properties in the area.
Despite these risks, the analysis must consider the 0.0% renter share in the ZIP code. Typically, a high concentration of renters would indicate higher demand for Section 8 vouchers. However, in this case, the absence of renters means that the demand for Section 8 vouchers is likely minimal, reducing the pool of potential tenants who qualify for the program. This low demand could result in fewer applications and longer wait times for finding suitable tenants.
Verdict: High risk for a first-time Section 8 landlord.
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.