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 | $1,100 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $272,209 | 0.57% | F |
| 3BR | $1,840 | $394,837 | 0.47% | F |
| 4BR | $2,030 | $525,488 | 0.39% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 12850, Middle Grove, NY, might raise several concerns regarding the viability of investing in rental properties through the Section 8 program. Let's address these objections directly using available data.
Will Fair Market Rent (FMR) of $1480 cover the mortgage on a $346,104 home?
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 12850 for fiscal year 2024 is set at $1480. This figure is critical when considering whether it can adequately cover the mortgage on a property valued at $346,104. To determine this, one must look at the average mortgage rates and terms. With an average 30-year fixed-rate mortgage around 6%, the monthly payment on a $346,104 home would be approximately $2070. Clearly, the FMR of $1480 falls short by over $500 per month. However, it's important to note that FMR is only one component of the total rental income. Landlords should also consider potential tax benefits, lower vacancy rates, and the stability provided by the Section 8 program.
Is there enough renter demand at 11.4%?
The percentage of renters in ZIP 12850 stands at 11.4%. While this figure is relatively low compared to urban areas, it does not necessarily indicate a lack of demand. The demand for rental properties, especially those participating in the Section 8 program, is often driven by the availability of affordable housing options. Investors should review local demographics and economic conditions to gauge the true demand. For instance, if there is a significant population relying on government assistance for housing, the demand could still be robust despite the overall low rental rate.
Will vouchers keep pace with $946 market rents?
The current market rent for a two-bedroom apartment in ZIP 12850 is $946. The question here is whether the Housing Choice Voucher (Section 8) program will adjust its payments to match rising market rents. Historically, voucher amounts have not always kept up with inflation or market increases, leading to gaps between what the voucher covers and the actual market rent. In ZIP 12850, the difference between the FMR of $1480 and the current market rent of $946 suggests that vouchers currently exceed market rates. However, future adjustments depend on federal funding and policy changes, which cannot be predicted with certainty based on the data alone.
In summary, while the FMR of $1480 does not fully cover the mortgage on a $346,104 home, other factors such as tax benefits and lower vacancy rates can contribute positively. The 11.4% renter demand requires further investigation into local demographics. Lastly, vouchers currently exceed market rents but future adjustments are uncertain due to external factors beyond the scope of this data.
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.