Location: Cayuga County, NY | Metro: Cayuga 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 | $1,160 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $346,526 | 0.41% | F |
| 3BR | $1,900 | $323,143 | 0.59% | F |
| 4BR | $2,180 | $371,390 | 0.59% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 13026, Aurora, NY, might raise several concerns regarding the feasibility of investing in Section 8 properties. Here are three common objections and how the data addresses them.
Objection 1: Will Fair Market Rent (FMR) of $1,580 (for metro FY 2026) cover the mortgage on a $333,273 home?
The FMR is the maximum amount that HUD will pay for rental housing in an area. However, the actual mortgage payment depends on various factors including the interest rate, term length, and down payment. For a home priced at $333,273, if we assume a typical 30-year fixed-rate mortgage with an average interest rate of around 4%, the monthly principal and interest payment would be approximately $1,600 without considering property taxes and insurance. Given the FMR of $1,580, it suggests that the rental income alone might not fully cover the mortgage payment. Investors should consider additional sources of income or lower their price expectations to ensure profitability.
Objection 2: Is there enough renter demand at 25.8%?
The percentage of renter-occupied housing units in ZIP 13026 stands at 25.8%. This figure indicates that a significant portion of the population does not own homes but instead relies on renting. While this may seem low compared to urban areas, it still represents a substantial demand. Additionally, the rental market's dynamics can change based on economic conditions and availability of affordable housing. The data provided does not offer a complete picture of the rental market's health, so further investigation into vacancy rates and tenant turnover could provide clearer insights into the demand.
Objection 3: Will vouchers keep pace with $1,259 market rents?
The current market rent for ZIP 13026 is $1,259. The FMR of $1,580 is higher than the market rent, which implies that voucher holders could potentially cover the cost of renting a home at market rates. However, the pace at which voucher amounts adjust to match market rents is another critical factor. Historically, voucher adjustments have been slower than market rent increases. Therefore, while the FMR is currently sufficient to cover market rents, future changes in both voucher amounts and market rents need to be monitored closely to ensure sustained profitability.
In conclusion, while the data provides some reassurance regarding the viability of Section 8 investments in ZIP 13026, it also highlights areas where further research is necessary to make informed decisions. The potential gap between mortgage payments and rental income, along with the need for detailed analysis of the rental market's demand and supply, underscores the importance of thorough due diligence before committing to such investments.
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.