Location: Cortland County, 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 for Section 8 properties in ZIP code 13073, Groton, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1410, while the Census ACS reports the market rent at $1095. This means the FMR is $315 higher than the market rent, representing a 28.7% premium.
The discrepancy between these figures presents an opportunity for landlords and small-portfolio investors. The higher FMR indicates that voucher tenants can pay up to $1410 per month, which is above the current market rate. This makes Groton, NY, a favorable location for a yield play. With 25.6% of residents being renters and a median home value of $241,457, the area has a solid base of rental demand and property values that support higher rents.
Investors should consider the implications of renting to voucher holders. While they can command a higher rent due to the FMR, the actual cost of housing voucher tenants might be lower than open-market rates. This is because voucher holders have their rent subsidized, and the landlord receives the remainder directly from the government. Given Groton's median income of $71,452, many residents may rely on housing vouchers to afford living in the area.
To summarize, the $315 difference between the FMR and the market rent represents a 28.7% premium. This gap makes Groton, NY, attractive for landlords looking to maximize their rental yields. However, it also highlights the importance of understanding the local economic conditions, where a significant portion of the population depends on housing assistance to meet their living costs.
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.