Location: Utica-Rome, NY | Metro: Syracuse, NY MSA
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 | $920 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,050 | $177,536 | 0.59% | F |
| 2BR | $1,310 | $193,076 | 0.68% | D |
| 3BR | $1,580 | $238,549 | 0.66% | D |
| 4BR | $1,720 | $284,897 | 0.6% | D |
| 5BR | $1,995 | $302,151 | 0.66% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into Canastota, NY (ZIP 13032) might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Here are some common objections and the data that addresses them.
Will Fair Market Rent (FMR) of $1070 cover the mortgage on a $218,157 home?
The Fair Market Rent (FMR) for ZIP 13032 in fiscal year 2024 is set at $1070. To determine if this will sufficiently cover the mortgage on a home valued at $218,157, we must consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage at an interest rate of 4.5%, the monthly payment on a $218,157 loan would be approximately $1116. This means that the FMR of $1070 falls short by about $46 per month. However, this does not account for potential tax benefits and other deductions that can lower the effective cost of owning the property.
Is there enough renter demand at 18.2%?
The percentage of households renting in Canastota, NY, stands at 18.2%. While this figure is relatively low compared to urban areas, it still represents a significant portion of the population. The demand for rental properties in smaller towns like Canastota can be steady due to the lack of alternative housing options and the preference for affordable living. It's important to note that the success of rental investments also depends on the local job market and economic conditions, which are not directly addressed by the data provided.
Will vouchers keep pace with $945 market rents?
The average market rent in ZIP 13032 is $945. The Section 8 voucher program aims to cover a substantial portion of this amount. However, the exact amount covered by the voucher can vary based on the specific household income and the number of bedrooms required. The data indicates that the FMR of $1070 is higher than the average market rent, suggesting that the voucher program is likely to cover the necessary amount for most units. Still, the growth rate of voucher amounts versus market rents is crucial and should be monitored closely. The provided data does not give a direct comparison between the growth trends of these two figures.
In summary, while the FMR of $1070 may not fully cover the mortgage on a $218,157 home, the gap is relatively small. There is sufficient renter demand at 18.2%, especially considering the local context. Vouchers are expected to keep pace with market rents, but investors should stay informed about any changes in the program or local rental market trends.
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.