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 | $1,690 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,330 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,060 |
| 5 Bedrooms | $3,550 |
| 6 Bedrooms | $3,976 |
| 7 Bedrooms | $4,294 |
| 8 Bedrooms | $4,509 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,940 | $495,719 | 0.39% | F |
| 2BR | $2,330 | $549,593 | 0.42% | F |
| 3BR | $2,780 | $604,860 | 0.46% | F |
| 4BR | $3,060 | $768,530 | 0.4% | F |
| 5BR | $3,550 | $1,117,955 | 0.32% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 12866, which includes parts of Saratoga Springs, NY, in Saratoga County, can be clearly understood by examining the SAFMR (Small Area Fair Market Rent) and local market rent rates. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1820. This figure is specifically tailored for this ZIP code, reflecting the unique rental market conditions here.
Local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $2,014. This represents the average rent charged for similar properties in the area. Landlords often wonder about the actual payment they will receive when a tenant uses a Section 8 voucher. Here's a breakdown:
A Section 8 voucher covers the difference between 30% of the tenant’s income and the SAFMR. If the tenant’s income is such that 30% of it plus their utility allowance does not cover the full SAFMR, then the voucher makes up the shortfall. Conversely, if the tenant’s 30% contribution exceeds the SAFMR, the voucher will only pay up to the SAFMR limit.
In ZIP 12866, landlords should expect the following reimbursement structure:
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 12866 can be calculated by comparing the SAFMR to the local market rent. Given the SAFMR of $1820 and the local market rent of $2,014, there is a gap of $194 per month. This means landlords will need to accept a lower rent than the market rate to participate in the Section 8 program, resulting in a net loss of $194 per month on a two-bedroom unit.
To illustrate, if a tenant's income requires them to pay $500 towards rent, and the utility allowance is $150, the total voucher payment would be $1820. Therefore, the landlord receives $500 from the tenant and $1320 from the voucher, totaling $1820. This leaves a $194 gap compared to the local market rent of $2,014.
Landlords should carefully consider this economic reality before deciding to participate in the Section 8 program in ZIP 12866. While the program provides stable tenants, the reimbursement rates do not fully align with the current market rents.
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.