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 | $1,080 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $312,164 | 0.47% | F |
| 3BR | $1,800 | $377,636 | 0.48% | F |
| 4BR | $2,060 | $408,259 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 12941 in Jay, NY, reveals some interesting insights into the potential investment returns for landlords and small-portfolio investors. To start, let's annualize the 2BR Fair Market Rent (FMR) and market rent figures against the median home value to derive the implied gross-yield.
Using the annualized 2BR FMR of $1,490 for fiscal year 2026, the implied gross-yield for a property participating in the Section 8 program would be approximately 4.5%. This is calculated by taking the annual rent ($1,490 x 12 months = $17,880) and dividing it by the median home value ($330,855).
In contrast, the market rent figure of $1,250 per month translates to an implied gross-yield of about 4.7%. This calculation involves multiplying the monthly rent by 12 months ($1,250 x 12 = $15,000) and then dividing by the median home value ($330,855).
At first glance, the market rent scenario appears to offer a slightly higher gross-yield compared to the Section 8 program. However, the reality is more nuanced. The 10.3% renter density in Jay, NY, suggests that there is limited demand for rental properties, making it challenging to maintain a consistent occupancy rate at market rents. On the other hand, the Section 8 program guarantees a steady stream of income, albeit at a slightly lower yield.
The N/A-day Days on Market (DOM) indicates that there is insufficient data to determine how quickly properties are rented out in this area. This could imply that the rental market is either very stable or has significant variability, which would affect the reliability of market rent yields.
In conclusion, while the market rent offers a marginally higher gross-yield, the stability and guaranteed income of the Section 8 program may provide a more realistic scenario for investors in ZIP 12941. Landlords should consider these factors when deciding whether to participate in the Section 8 program or aim for 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.