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 | $1,050 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,750 | $223,204 | 0.78% | D |
U.S. Census Bureau data (2024)
In evaluating whether to invest in ZIP code 12950 for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,470 cover the debt service on a property valued at $194,587?
Yes. The FMR of $1,470 is designed to ensure that the rent covers the cost of owning and maintaining a property. For a property priced at $194,587, this FMR would typically be sufficient to meet the debt service requirements, assuming standard financing terms and maintenance costs. However, specific conditions such as interest rates and property taxes must also be considered.
No. If the FMR does not cover the debt service, purchasing in this area would not be advisable for Section 8 landlords. It indicates that the income generated might not be enough to sustain ownership costs.
It Depends. If the debt service is close to the FMR, it could still be viable depending on additional factors like tax benefits, location-specific demand, and potential for rental increases. Detailed financial modeling is recommended to determine feasibility.
2) Is the market rent of $1,135 above, at, or below the FMR?
Above. If the market rent exceeds the FMR, there is an opportunity for landlords to earn higher profits outside of Section 8, making investment more attractive.
At. When market rent matches the FMR, landlords can expect stable returns but limited flexibility to adjust rents. This scenario supports steady cash flow but may not offer growth opportunities.
Below. If the market rent is below the FMR, Section 8 becomes a more compelling option as it ensures a higher, government-supported rental rate. However, landlords must consider the administrative burden and eligibility criteria for tenants.
3) Are 18.4% of residents renters and the days on the market (DOM) sufficient to create demand?
Yes. With 18.4% of residents being renters and the DOM status indicating a reasonable turnover rate, the demand appears adequate for Section 8 properties. Landlords can expect a steady stream of applicants.
No. If the percentage of renters is too low or the DOM is excessively high, indicating slow turnover, the demand for rental properties might not be strong enough to support a Section 8 investment.
It Depends. In cases where the DOM data is marked as 'N/A', further investigation into local market conditions is necessary. High renter percentages suggest potential demand, but the lack of DOM data means the actual speed of leasing properties remains uncertain.
The decision to invest in ZIP 12950 for Section 8 properties hinges on these key points. Landlords must weigh the financials against their tolerance for administrative work and their goals for rental income stability versus profit growth.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.