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 | $1,190 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $257,416 | 0.6% | F |
| 3BR | $2,130 | $352,054 | 0.61% | D |
| 4BR | $2,160 | $430,481 | 0.5% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,550 for ZIP 12783 (Swan Lake, NY) can sufficiently cover the mortgage on a home priced at $331,263. To address this, we must consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a $331,263 home would be approximately $1,630. This means that the FMR of $1,550 would indeed fall short of covering the mortgage, leaving a deficit of around $80 per month.
The second objection concerns the level of renter demand, which stands at 21.7%. While this percentage is lower than in many urban areas, it is still significant. A 21.7% rental rate suggests that there is a steady demand for rental properties in Swan Lake. However, this figure alone does not provide a complete picture. To fully assess the viability of rental investments, one would need to look at vacancy rates and the growth trends in the local economy. The data provided does not include these specifics, but a rental rate of 21.7% indicates that there is a notable segment of the population interested in renting.
Lastly, an investor might be concerned about whether Housing Choice Vouchers will keep up with the market rents, currently at $1,397. According to the data, the FMR of $1,550 is higher than the market rent, suggesting that voucher holders could potentially afford market-rate rentals. However, the key issue here is the availability and distribution of vouchers. Without specific data on the number of available vouchers and their utilization rates in ZIP 12783, it's challenging to definitively state how well they will keep pace with market rents. It's important to note that while the FMR provides a benchmark, actual voucher amounts can vary based on individual circumstances and the specific policies of the local housing authority.
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.