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 | $970 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $210,993 | 0.58% | F |
| 3BR | $1,580 | $241,957 | 0.65% | D |
| 4BR | $1,610 | $295,451 | 0.54% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 12865 (Salem, NY) for Section 8 investments, follow these steps:
1. Does the Fair Market Rent (FMR) of $1240 cover the debt service on a $225,952 property?
If your property's debt service is less than $1240 per month, then yes, the FMR can support your investment. For instance, if you finance the property at a rate that requires monthly payments under $1240, you can comfortably meet your financial obligations.
If your debt service exceeds $1240 per month, then no. The FMR will not be sufficient to cover your expenses. You must ensure that the rental income at the FMR level meets or exceeds your debt service costs.
2. Is the market rent of $955 above, at, or below the FMR?
If the market rent is above $1240, then it depends. While the market offers higher rents, Section 8 tenants are only eligible to pay up to the FMR. Consider whether you can attract non-Section 8 tenants willing to pay the market rate.
If the market rent is exactly $1240, then yes. This means the FMR aligns with the market rent, providing a clear path for Section 8 eligibility without leaving money on the table.
If the market rent is below $1240 but above $955, then yes. The FMR still provides a premium over the market rent, making Section 8 properties attractive to both tenants and investors.
If the market rent is below $955, then no. The market suggests that even non-Section 8 rents are lower than the average, which could indicate an oversupply of housing or other economic factors that might affect profitability.
3. Are 11.4% of renters combined with the unknown number of days on the market (DOM) indicative of enough demand?
If the Days on Market (DOM) is low, indicating quick turnover and high demand, then yes. Despite the relatively low percentage of renters, the fact that units are rented quickly suggests strong interest in the area.
If the DOM is high, then it depends. High DOM might suggest that while there is demand, it is not strong enough to quickly fill vacancies. In this case, consider the reasons behind the high DOM, such as seasonal fluctuations or specific housing preferences.
If the DOM is not available and the percentage of renters is low, then no. Without knowing how long units take to rent, a low percentage of renters does not provide a solid basis for investment confidence. It is important to know the rental market dynamics fully before committing to a purchase.
In summary, the decision to invest in ZIP 12865 for Section 8 properties hinges on the alignment between FMR and debt service, the relationship between FMR and market rent, and the strength of rental demand indicated by the DOM. Ensure you have all the necessary data points to make an informed decision.
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.