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 |
|---|---|---|---|---|
| 3BR | $1,840 | $492,730 | 0.37% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 12863 are governed by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1560 per month for fiscal year 2024. This SAFMR specifically applies to this ZIP code, reflecting the localized rental market conditions.
To understand what a voucher pays, you must consider both the tenant's portion of the rent and any utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. For simplicity, let's assume an average adjusted income of $1900 per month, leading to a tenant payment of approximately $570 per month. Utility allowances vary but are generally around $300 per month. Therefore, the total amount paid by the voucher would be the sum of the tenant’s portion and the utility allowance, which in this case is $870.
This means that out of the SAFMR of $1560, the voucher will cover $870, leaving a reimbursement gap of $690. This gap is the difference between what the landlord can charge under the SAFMR and what the voucher plus tenant contribution will cover. It is important to note that if the local market rent is below the SAFMR, landlords might face a smaller gap or even a surplus where the voucher covers more than the actual market rent. However, in ZIP 12863, since the local market rent data is not available, we can only rely on the SAFMR figure to determine the reimbursement scenario.
In conclusion, for a two-bedroom apartment in ZIP 12863, landlords should expect a reimbursement gap of $690 per month based on the SAFMR and typical voucher payments. This economic reality shapes the decision-making process for landlords considering participation in 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.