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 | $860 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,420 | $121,815 | 1.17% | B |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 12998 reveals two distinct situations based on the provided data. The first scenario involves the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $1,190, which is set for fiscal year 2026. This figure represents the metro area standard, and when compared to the median home value of $94,940, it implies a gross yield of approximately 15.7%. To calculate this, we take the annual rent ($1,190 multiplied by 12 months) and divide it by the median home value.
The second scenario, however, presents a challenge due to the lack of specific market rent data. With the market rent marked as 'N/A', it's impossible to derive an exact gross yield for this situation. However, the absence of this data suggests that market rents might either be significantly higher or lower than the FMR, making it difficult to provide a precise comparison without further information.
Given the 16.6% renter density in ZIP 12998, it's clear that a significant portion of the housing market caters to renters. However, the 'N/A' days on the market (DOM) indicate a lack of available data on how quickly properties are rented out, which could affect the gross yield calculation. Despite this, the FMR-based scenario offers a concrete and reliable gross yield percentage of about 15.7%, which can serve as a benchmark for investors looking to understand the potential returns from Section 8 rentals in this area.
While the market rent scenario would likely offer a different gross yield, the lack of specific figures makes it less useful for precise financial planning. Investors should focus on the FMR-based gross yield of 15.7% as a starting point for their investment decisions, understanding that actual yields may vary depending on the specifics of market conditions and the particular property in question.
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.