Location: Syracuse, NY | Metro: Syracuse, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,140 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 13020 reveals a few key points that landlords and small-portfolio investors should consider. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $1240 per month. This annualizes to $14,880 per year. Given that the median home value is not available, we must rely on other metrics to draw comparisons.
In the absence of market rent data, it's challenging to provide an exact gross yield. However, using the FMR as a baseline, the implied gross yield can be calculated if we assume the average home value and that these homes are being rented out at the FMR rate. Without the median home value, let's proceed with the assumption that a typical home in this area could be valued around $250,000, based on general housing market trends. In this scenario, the gross yield would be approximately 5.95%, calculated as $14,880 divided by $250,000.
The 11.4% renter density indicates that a significant portion of the population in ZIP 13020 owns their homes, which suggests that rental properties, including those under Section 8, might face competition from homeowners looking to rent out their properties. Additionally, the days on market (DOM) being unavailable makes it difficult to assess how quickly rental units are occupied, but it's worth noting that lower renter density generally correlates with longer DOM periods, potentially affecting cash flows.
While the implied gross yield based on the FMR provides a useful benchmark, it's important to recognize that actual yields could vary significantly depending on the specific property and its location within the ZIP code. For instance, properties in higher-demand areas might command rents closer to the market rate, even if it's not officially recorded. Conversely, properties in less desirable areas might struggle to attract tenants willing to pay the FMR, thus reducing potential income.
In conclusion, the gross yield derived from the FMR is a conservative estimate, likely underrepresenting the true earning potential for landlords who manage to secure tenants paying closer to the unrecorded market rate. Given the limited data on market rent and DOM, the FMR-based yield serves as a reliable lower bound for investment consideration.
Data Sources: FMR data from HUD (2027). 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.