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 | $940 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,570 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,570 | $997,996 | 0.16% | F |
U.S. Census Bureau data (2024)
The ZIP code 12874, located in Silver Bay, NY, presents several key considerations for landlords and small-portfolio investors. One common objection raised by investors is whether the Fair Market Rent (FMR) of $1290 will sufficiently cover the mortgage on a $977,009 home. According to recent data, the median home value in ZIP 12874 is approximately $535,700. Assuming a typical mortgage rate of around 5%, the monthly mortgage payment on a $977,009 home would be roughly $5,400, which is significantly higher than the FMR. Therefore, relying solely on the FMR to cover the mortgage is impractical.
Another concern is the level of renter demand, which stands at 18.8%. This percentage indicates that nearly one-fifth of the population in ZIP 12874 seeks rental housing. However, this figure alone does not guarantee sufficient demand. To provide context, the median home value in ZIP 12874 is notably lower than the hypothetical $977,009 home, suggesting that the majority of residents can afford to purchase rather than rent. This implies that the demand for rentals, particularly those priced at or near the FMR, may be limited.
A final point of skepticism involves the ability of housing vouchers to keep pace with market rents. Unfortunately, the data provided does not include specifics on voucher amounts or their adjustment rates in ZIP 12874. Given the variability in housing costs and the potential for inflation, it is crucial to verify if voucher programs are updated frequently enough to match rising market rents. Without this information, it is challenging to make a definitive statement regarding the adequacy of vouchers.
In summary, while ZIP 12874 offers opportunities for real estate investment, particularly in the rental market, the FMR of $1290 is unlikely to cover the mortgage on a $977,009 home. The 18.8% renter demand suggests some interest but does not assure high occupancy rates for properties at this price point. Lastly, the lack of specific data on housing vouchers means that their effectiveness in supporting market rents remains uncertain. Investors should conduct thorough research and consider these factors carefully before making any investment decisions in this area.
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.