Location: Albany-Schenectady-Troy, NY | Metro: Albany-Schenectady-Troy, NY MSA
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 | $1,200 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $331,931 | 0.5% | F |
| 3BR | $1,980 | $440,813 | 0.45% | F |
| 4BR | $2,180 | $586,204 | 0.37% | F |
| 5BR | $2,529 | $718,409 | 0.35% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Greenfield Center, NY (ZIP 12833), might have several valid concerns regarding the viability of investing in the area under Section 8 housing programs. Let's address these concerns directly using available data.
Objection 1: Will the Fair Market Rent (FMR) of $1190 for zip code 12833 in fiscal year 2024 cover the mortgage on a $442,832 home?
The FMR of $1190 per month does not fully cover the average monthly mortgage payment on a $442,832 home. Assuming a typical 30-year fixed-rate mortgage at an interest rate of around 5%, the monthly mortgage payment would be approximately $2,300. Therefore, the FMR alone is insufficient to cover the mortgage, requiring additional income sources such as private tenants or other rental properties.
Objection 2: Is there enough renter demand at 8.8%?
The rental demand in Greenfield Center, NY, appears limited given the low percentage of 8.8%. This suggests that only a small portion of the local population is actively seeking rental properties. However, it is important to consider the broader context of the housing market. While the demand percentage is low, the actual number of renters could still be sufficient if the overall population size supports it. To accurately gauge demand, further analysis of the local tenant pool and vacancy rates would be necessary.
Objection 3: Will vouchers keep pace with market rents of $1,342?
The current market rent of $1,342 exceeds the FMR of $1190, indicating a potential gap between what landlords can charge and what vouchers will cover. The effectiveness of vouchers in covering market rents depends on the specific terms of the voucher program and any adjustments made by the government to align with market conditions. It is crucial for landlords to stay informed about changes in voucher policies and to consider the possibility of supplementing the voucher amount with additional rent from tenants who can afford to pay the difference.
In summary, while the FMR in ZIP 12833 is not high enough to cover the mortgage on a $442,832 home, and the rental demand percentage is relatively low, the key to success lies in understanding the local market dynamics and being prepared to diversify income streams. Vouchers may not fully meet market rents, but creative solutions can bridge the gap.
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.