Location: Glens Falls, NY | Metro: Glens Falls, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,140 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 12820 reveals a distinct scenario for potential Section 8 investments. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $1340 per month. This figure annualizes to $16,080. Given the median home value of $1,669,002, we can derive an implied gross yield for a hypothetical investment property.
In the case of utilizing the Section 8 program, the implied gross yield would be approximately 0.96%. This calculation is derived from the annualized FMR ($16,080) divided by the median home value ($1,669,002). However, the local rental market presents a different perspective. Since the market rent is not available, it's challenging to provide a direct comparison. Yet, it's worth noting that the absence of market rent data might indicate a scarcity of rental properties, aligning with the reported 0.0% renter density.
The days on market (DOM) being listed as N/A further suggests that there may be limited activity in the rental sector. In such a context, relying solely on the Section 8 program could be seen as a conservative approach, given the guaranteed income stream but low gross yield. However, without a benchmark market rent, it's difficult to assess the true potential of higher yields through conventional renting practices.
Despite the limitations in market data, the low gross yield from the Section 8 program is evident. Landlords and small-portfolio investors should consider the stability versus profitability trade-off when deciding whether to participate in the Section 8 program for this ZIP code. The 0.96% gross yield from Section 8 contrasts sharply with typical market expectations, suggesting that alternative investment strategies or areas might offer better returns.
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.