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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $228,030 | 0.47% | F |
| 3BR | $1,310 | $278,294 | 0.47% | F |
| 4BR | $1,490 | $295,705 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 12932, Elizabethtown, NY, reveals some interesting insights into potential investment opportunities. Using the annualized Fair Market Rent (FMR) for a two-bedroom property at $990 per month, the annual income would be $11,880. In contrast, the market rent based on Census ACS data stands at $769 per month, equating to an annual income of $9,228.
To calculate the gross yield, we divide the annual income by the median home value of $247,393. For the FMR scenario, the gross yield is approximately 4.8%. This is calculated as follows: $11,880 / $247,393 = 0.048 or 4.8%. For the market rent scenario, the gross yield drops significantly to about 3.7%, calculated by $9,228 / $247,393 = 0.037 or 3.7%.
The 19.9% renter density suggests that while there is a notable portion of renters in the area, it also indicates a significant number of homeowners. Given this, the FMR scenario might appear optimistic since it assumes a higher rental rate, which could be challenging to achieve given the local homeowner-to-renter ratio. The N/A-day Days on Market (DOM) implies either a very quick rental process or a lack of available data, which could mean that the rental market is either highly efficient or less tracked compared to other areas.
In practice, the market rent scenario is likely more realistic. With a gross yield of 3.7%, it reflects the actual rental rates observed in the area rather than the government-set FMR. While the FMR scenario offers a higher gross yield of 4.8%, achieving such rents consistently could be difficult without substantial market demand or a unique property offering. Investors should consider the local rental dynamics, including the proportion of renters versus homeowners, when estimating potential returns.
Given the data, the market rent scenario provides a clearer picture of the gross yield investors can realistically expect in Elizabethtown, NY. However, the FMR scenario could serve as a benchmark for maximum allowable rents under the Section 8 program, guiding landlords on the upper limit of what they can charge if their tenants are receiving federal housing assistance.
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.