Location: Sullivan County, NY | Metro: Sullivan County, NY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 12762 is built around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,360, while the Census ACS data indicates that the market rent is $1,281. This creates a positive gap of $79, or approximately 6.17%, between what voucher holders can pay and the prevailing market rate.
This gap makes ZIP 12762 an attractive yield play for landlords and small-portfolio investors. Voucher tenants provide a guaranteed source of rental income that exceeds the local market average. Since the government covers the difference between the tenant's contribution and the FMR, landlords can secure higher rents without the risk associated with traditional market-rate tenancy.
In the broader context of ZIP 12762, where 33.3% of residents are renters and the median household income stands at $87,381, the presence of Section 8 vouchers can stabilize the rental market. Given the lack of data on median home values, it suggests that the area may be more focused on rentals rather than homeownership, making the Section 8 program even more pivotal.
However, there are costs to consider when housing voucher tenants. Landlords must ensure their properties meet HUD's Housing Quality Standards (HQS), which can require significant investment in repairs and maintenance. Additionally, the administrative burden of managing Section 8 properties includes regular inspections and compliance checks. Despite these challenges, the financial benefits of receiving rents closer to the FMR of $1,360, compared to the lower market rate of $1,281, can outweigh the costs for many investors.
To summarize, the gap between the FMR and market rent in ZIP 12762 presents a clear opportunity for landlords to increase their yields through the Section 8 program. While there are compliance and maintenance considerations, the potential for higher, government-backed rental income makes this ZIP code a favorable investment for those willing to navigate the requirements.
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.