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 | $850 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $231,466 | 0.5% | F |
| 3BR | $1,410 | $266,528 | 0.53% | F |
| 4BR | $1,620 | $380,809 | 0.43% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 12993 in Westport, NY, are significant and should be carefully considered. Tenant turnover could be a major issue due to the disparity between the market rent of $940 and the Fair Market Rent (FMR) of $1,180 for fiscal year 2026 in the metropolitan area. This difference suggests that tenants might struggle to afford even the subsidized rental rates, leading to frequent changes in occupancy.
Vacancy exposure is another concern. The days on market (DOM) is listed as N/A, which implies there is no readily available data indicating how long properties typically remain vacant before being rented. This lack of information makes it difficult to predict the likelihood of prolonged vacancies, which can significantly impact cash flow and profitability.
Deferred maintenance is also a risk factor. With an average home value of $267,137 and a median household income of $80,139, property owners may find themselves with limited financial resources to invest in timely repairs and upgrades. This could lead to increased maintenance costs over time, potentially reducing the overall return on investment.
However, these risks must be weighed against the substantial number of renters in the area. The renter share is 17.6%, which indicates a relatively high concentration of individuals who are likely to rely on rental assistance programs such as Section 8. High renter density generally translates into higher demand for affordable housing options, which could mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the risk level for a first-time Section 8 landlord in ZIP code 12993 is moderate. While there are notable challenges related to tenant turnover and maintenance, the strong presence of renters provides a counterbalance that could support a successful investment strategy.
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.