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 | $1,160 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,080 | $386,348 | 0.54% | F |
| 4BR | $2,140 | $475,567 | 0.45% | F |
U.S. Census Bureau data (2024)
ZIP code 12777 in Sullivan County, NY, has a Federal Market Rent (FMR) of $1,430 for fiscal year 2026, which is significantly lower than the market rent of $2,179. This indicates that the area offers more affordable rental options compared to what the market demands, making it potentially attractive for Section 8 participants who seek housing within their subsidy limits.
The median home value in ZIP 12777 stands at $386,723, which is indicative of a relatively stable property market. However, this figure is not necessarily high or low when compared to other ZIP codes in Sullivan County without additional comparative data. The 3.0% renter share suggests that the majority of residents in this area prefer homeownership over renting, which can be common in suburban and rural areas like Sullivan County.
To determine if ZIP 12777 is a value pocket, a mid-tier neighborhood, or a premium sub-market within the Sullivan County metro, we must consider the relationship between the FMR and the market rent. With an FMR of $1,430 and a market rent of $2,179, the gap suggests that 12777 could be seen as a value pocket for landlords participating in the Section 8 program. The discrepancy between the subsidized rent and the market rent means that landlords can offer homes at the FMR level while still potentially profiting from the higher market rates.
The low renter share does not suggest a typical Section 8 sweet spot, where a high proportion of renters might indicate a concentration of subsidized housing. Instead, it implies that most residents own their homes, which could mean that landlords should expect competition from homeownership opportunities. Nonetheless, the affordability of rental units relative to market rents makes ZIP 12777 a strategic location for landlords looking to serve the needs of low-income renters under the Section 8 program.
In conclusion, ZIP 12777 appears to be a value pocket within the Sullivan County, NY, metro, offering more affordable rental options compared to the market rent. While the renter share is low, the significant difference between FMR and market rent provides an opportunity for landlords to participate in the Section 8 program effectively, ensuring they meet the needs of eligible tenants without sacrificing profitability.
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.