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 | $900 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $284,990 | 0.41% | F |
| 3BR | $1,630 | $418,675 | 0.39% | F |
| 4BR | $1,710 | $450,163 | 0.38% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 12764, Narrowsburg, NY, within the Sullivan County, NY metro area, does not favor landlords. The Fair Market Rent (FMR) for the fiscal year 2026 is set at $1,110, whereas the actual market rent as reported by the Census ACS is only $956. This discrepancy means that landlords relying on Section 8 vouchers will find themselves shortchanged by over $150 per month, reducing potential profitability.
Acquisition costs in the area are relatively moderate, with a median home value of $364,076. However, the lack of data on Days on Market (DOM) and the percentage of homes that required a price cut before selling indicates that the local real estate market might be less active or transparent. This could pose challenges for new acquisitions, especially when trying to gauge how quickly properties can be sold or if they need to be listed at a discount.
Tenant demand is limited given the small population size of 1,861 residents. Only 19.9% of the population are renters, suggesting a smaller pool of potential tenants. Landlords should expect competition for rental properties to be lower, which could impact occupancy rates and the ease of finding suitable tenants.
Verdict: ZIP 12764 presents a challenging environment for landlords and small-portfolio investors due to unfavorable rent math and limited tenant demand. While acquisition costs are reasonable, the lack of detailed market activity metrics adds uncertainty. Investors must carefully consider these factors before committing to this market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.