Location: Cayuga County, 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 | $970 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $191,036 | 0.66% | D |
| 3BR | $1,590 | $231,961 | 0.69% | D |
| 4BR | $1,830 | $260,179 | 0.7% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 13033 (Cato, NY) might have several concerns regarding the viability of offering rental properties under Section 8. Let's address these objections head-on using the available data.
Objection 1: Will FMR $1110 (zip FY 2024) cover the mortgage on a $216,686 home?
The Fair Market Rent (FMR) for ZIP 13033 in fiscal year 2024 is set at $1110. This figure represents the average monthly rent that a landlord can expect to receive through the Section 8 program. To determine if this will cover the mortgage on a $216,686 home, we need to consider the interest rates and loan terms. Assuming an average fixed-rate mortgage of 4% over a 30-year term, the monthly mortgage payment would be approximately $1075. Thus, the FMR of $1110 would indeed cover the mortgage payment, leaving a small margin for property taxes, insurance, and maintenance costs.
Objection 2: Is there enough renter demand at 12.2%?
The rental vacancy rate for ZIP 13033 stands at 12.2%. This percentage is higher than the national average, which suggests a lower demand for rental properties. However, it's important to note that the rental vacancy rate does not directly correlate with the demand for Section 8 housing. The demand for affordable housing tends to remain stable regardless of the overall rental market conditions. Therefore, while the general rental market may not be robust, the specific demand for Section 8 properties could still be strong due to the limited availability of affordable housing options.
Objection 3: Will vouchers keep pace with $920 market rents?
The market rent for ZIP 13033 is $920 per month. The FMR for the area is $1110, which is higher than the market rent. This indicates that the voucher amount is likely to cover the market rent comfortably. However, it's crucial to monitor local economic trends and the federal funding for the Section 8 program to ensure that voucher amounts continue to align with market rents. While the current data shows that vouchers should cover the market rent, future adjustments in voucher amounts could impact this balance.
In conclusion, the data provides a mixed picture for ZIP 13033. The FMR is sufficient to cover the mortgage on a typical home, and while the rental vacancy rate is relatively high, it does not necessarily reflect the demand for Section 8 housing. Lastly, the current voucher amounts appear to match the market rents, but ongoing vigilance is necessary to anticipate any changes in funding or economic conditions.
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.