Location: Essex County, NY | Metro: Essex 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 | $830 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $238,269 | 0.57% | F |
U.S. Census Bureau data (2024)
The yield potential in ZIP 12851 is driven primarily by the Federal Market Rent (FMR) figure of $1,160 for the fiscal year 2026. This represents the maximum rent that can be charged for Section 8 properties, which is a significant metric for rental income. However, the median home value in the area is notably lower at $122,000, suggesting that the area may not offer the same level of equity appreciation seen in higher-priced markets. For comparison, the median home value in the broader metro area is $212,778, indicating that ZIP 12851 offers a more affordable entry point for investors.
In terms of stability, ZIP 12851 exhibits several factors that contribute to its classification. With a reported 9.1% of households being renters, the area has a relatively low rental demand. This figure is critical because it suggests limited competition among landlords, potentially leading to less stable occupancy rates. Additionally, the median household income in the area is $73,750, which is below the national average, further impacting the ability of residents to afford higher rents or to purchase homes outright. The lack of data regarding days on market (DOM) makes it challenging to assess the speed at which properties sell, but the low median home value implies that homes may move relatively quickly in a buyer's market.
Considering these factors, ZIP 12851 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The FMR provides a predictable income stream for Section 8 properties, while the low median home value indicates a more conservative approach to equity appreciation. The modest rental demand and income levels suggest that while yields may not be exceptionally high, the cash flow generated by Section 8 properties is likely to be consistent and reliable.
To summarize, the combination of a moderate FMR, low median home value, and modest rental demand and income levels points to ZIP 12851 as a zone where investors can expect steady cash flow from Section 8 properties without the volatility associated with flipping properties in higher-demand areas. This makes it an attractive option for landlords and small-portfolio investors seeking a stable investment with predictable returns.
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.