Location: Syracuse, 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 | $980 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $218,647 | 0.64% | D |
| 3BR | $1,700 | $254,919 | 0.67% | D |
| 4BR | $1,840 | $313,709 | 0.59% | F |
| 5BR | $2,134 | $334,254 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 13057, East Syracuse, NY, reveals two distinct rental scenarios: one based on the Fair Market Rent (FMR) and another using the Zillow Observed Rental Index (ZORI).
Annualizing the 2-bedroom FMR of $1070 for fiscal year 2024 yields an annual income of $12,840. Given the median home value of $241,278, the implied gross yield for the Section 8 scenario is approximately 5.3%. This calculation is derived by dividing the annual income ($12,840) by the median home value ($241,278).
In contrast, using the ZORI market rent of $1,933 annually generates an income of $23,196. The implied gross yield for this market rent scenario is about 9.6%, calculated similarly by dividing the annual income ($23,196) by the median home value ($241,278).
The 24.0% renter density in East Syracuse suggests a moderate level of demand for rental properties. However, the lack of data on days on market (DOM) makes it difficult to assess the speed at which properties can be rented out. Despite this limitation, the higher gross yield from the market rent scenario is more realistic considering the current rental environment.
While the Section 8 program offers a stable and consistent source of rental income, the lower gross yield of 5.3% may not be attractive enough for landlords or small-portfolio investors looking for better returns. The market rent scenario, with its 9.6% gross yield, reflects the actual rental rates that tenants are willing to pay, thereby providing a more accurate representation of potential earnings.
Investors should note that the market rent scenario assumes full occupancy throughout the year, which might not always be the case due to varying tenant preferences and the availability of other affordable housing options. Nonetheless, the significant difference between the two gross yields indicates that pursuing market rents could be a more profitable strategy, especially when taking into account the relatively low proportion of renters in the area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.