Location: Ithaca, NY | Metro: Ithaca, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,140 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 13062, Etna, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for FY 2024 is set at $1400, while the median home value stands at $257,400. Given that the median household income in Etna, NY, is reported as -$666,666,666, which seems to be an error and should be verified with official sources, we can infer that the local economy is modest.
The FMR exceeds the market rent by a substantial margin, making it a yield play for landlords. Voucher tenants can offer a steady stream of income due to the government subsidy, reducing the risk associated with tenant turnover and non-payment. However, this also implies that landlords may need to adjust their expectations regarding rental prices, as the subsidized rates are significantly below the open-market rates.
To provide a clearer picture, let’s consider the context: Etna, NY, has a 31.6% renter population, indicating a notable segment of the community relies on rental housing. The high affordability of homes relative to local incomes, as indicated by the erroneous median household income figure, suggests that Etna is an economically balanced area where rental subsidies can play a crucial role in maintaining housing stability.
The cost of housing voucher tenants below open-market rates is evident. Landlords might find themselves renting out units at a discount compared to what they could charge in the open market. However, the reliability of the Section 8 program ensures consistent payment, mitigating financial risks.
Conclusion: The FMR of $1400 is notably higher than the implied market rent, creating an opportunity for landlords to participate in a yield-focused investment strategy. Despite the lower-than-market rental rates, the program’s reliability and the local context make it a viable option for maintaining a stable rental portfolio in Etna, NY.
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.