Location: Franklin County, NY | Metro: Clinton 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 | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $176,791 | 0.64% | D |
| 3BR | $1,350 | $214,187 | 0.63% | D |
| 4BR | $1,520 | $218,630 | 0.7% | D |
U.S. Census Bureau data (2024)
Saranac, NY, ZIP code 12981, is a small, primarily owner-occupied community with a total population of 2,259 residents. Only 8.4% of the population are renters, indicating a predominantly homeowner-based area. The median household income in this neighborhood is strong at $76,450, which supports a relatively affluent community. The median home value stands at $187,963, reflecting an affordable housing market that is accessible to many local families.
The rental economics in Saranac present an interesting opportunity for Section 8 investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,170, significantly higher than the current market rent of $901 as reported by the Census Bureau's American Community Survey. This disparity suggests that there is room for rental properties to increase their rates closer to the FMR without losing tenants who rely on government assistance programs.
Given these conditions, Saranac, NY is better suited for a hands-on value-add buyer rather than a hands-off voucher operator. The low percentage of renters means that there is limited demand for rental units in general, and the majority of available rental properties are likely occupied by non-voucher recipients. For those interested in Section 8 investments, enhancing property values through improvements and increasing rents to align with the FMR could be a more effective strategy. This approach would require active management and a keen eye for opportunities to add value, rather than simply relying on the steady but limited demand for subsidized housing.
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.