Location: Glens Falls, NY | Metro: Glens Falls, 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 | $1,040 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $410,841 | 0.32% | F |
| 3BR | $1,700 | $534,462 | 0.32% | F |
| 4BR | $1,720 | $701,577 | 0.25% | F |
| 5BR | $1,995 | $1,299,384 | 0.15% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 12845, located in Lake George, NY, reveals two distinct rental income scenarios based on the Fair Market Rent (FMR) and market rent figures. Using the annualized 2BR FMR of $1380 for FY 2024, the gross yield calculation provides insight into the potential returns for Section 8 properties in this area.
To calculate the gross yield, we first annualize the 2BR FMR. The annualized FMR for a 2BR unit is $1380 * 12 = $16,560. Given the median home value of $524,701, the gross yield based on the FMR would be $16,560 / $524,701 * 100 = approximately 3.15%. This means that if a property were rented at the FMR, it would generate a 3.15% gross yield annually.
In contrast, the market rent figure of $1,055 per month, derived from Census ACS data, offers a different perspective. Annualizing the market rent, we get $1,055 * 12 = $12,660. Applying this to the median home value, the gross yield based on market rent is $12,660 / $524,701 * 100 = approximately 2.41%. Therefore, renting at the market rate would result in a lower gross yield of 2.41% compared to the FMR-based scenario.
The renter density of 24.8% suggests that a significant portion of the population in Lake George, NY, may rely on rental assistance programs such as Section 8. However, the lack of data on the number of days on market (DOM) makes it challenging to determine how quickly properties can be leased under these conditions. Despite this uncertainty, the higher gross yield associated with the FMR indicates a potentially better investment opportunity for landlords and small-portfolio investors interested in Section 8 properties.
While the market rent scenario yields a lower gross return, it may be more realistic given the local rental market dynamics and the percentage of residents who might qualify for Section 8. Nonetheless, the FMR-based gross yield of 3.15% stands out as a more attractive option for those willing to navigate the complexities of the Section 8 program.
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.