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 | $940 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $990 | $44,852 | 2.21% | A+ |
| 3BR | $1,570 | $544,874 | 0.29% | F |
| 4BR | $1,800 | $871,894 | 0.21% | F |
| 5BR | $2,088 | $1,459,534 | 0.14% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 12946 is built around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as determined by the federal government for fiscal year 2026, stands at $1,290. In contrast, the Census ACS data indicates that the market rent is lower at $1,131. This creates a gap of $159, which represents a 13.8% difference between the two figures.
Given that the FMR exceeds the market rent, it's clear that voucher tenants can be a significant yield play for landlords and small-portfolio investors. The federal government pays the difference between the tenant's contribution and the FMR, ensuring a steady income stream that is higher than what could be obtained through regular market rents. This makes Section 8 properties particularly attractive in ZIP 12946, where 35.6% of residents are renters and the median home value is $335,758. With a median income of $77,548, many local residents are likely to qualify for housing assistance, further supporting the viability of Section 8 tenancy.
The higher guaranteed rent amount from the voucher program can offset the costs associated with maintaining a property to meet the standards required by the program. It also provides a reliable source of income that is less susceptible to market fluctuations. For investors looking to capitalize on the financial stability offered by the Section 8 program, ZIP 12946 presents an opportunity to achieve yields above the current market rate, while serving a population in need of affordable housing solutions.
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.