Location: Cortland County, NY | Metro: Cortland County, NY
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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $157,693 | 0.74% | D |
| 3BR | $1,460 | $186,232 | 0.78% | D |
| 4BR | $1,940 | $203,215 | 0.95% | C |
U.S. Census Bureau data (2024)
To decide whether you should invest in ZIP code 13101 (McGraw, NY) for Section 8 properties, follow this decision tree based on the given data:
1) Does FMR $1,130 (metro FY 2026) clear debt service on a $171,377 property?
Yes: The Fair Market Rent (FMR) of $1,130 is sufficient to cover the debt service on a property valued at $171,377. This means that if your mortgage payments and other fixed costs do not exceed $1,130 per month, you can break even or make a profit with Section 8 tenants.
No: If the debt service on your $171,377 property exceeds $1,130 monthly, then investing in this ZIP code would not be financially viable under the Section 8 program.
It Depends: If the debt service is close to $1,130, you need to consider additional income sources or cost-saving measures. Calculate your total monthly expenses, including taxes, insurance, and maintenance, to determine if the FMR covers these costs.
2) Is market rent $1,042 (Census ACS) above, at, or below FMR?
Above: With a market rent of $1,042 being below the FMR of $1,130, there is potential for higher rental income when renting to non-Section 8 tenants. However, this does not directly impact the viability of Section 8 investments.
At: If market rents were exactly at the FMR, it would indicate a balanced market. Since they are slightly below, it suggests that the market may favor Section 8 rents over private market rates.
Below: Given that the market rent is already below the FMR, landlords can potentially command slightly higher rents through Section 8 than what the private market offers.
3) Are 19.5% renters + N/A-day DOM enough demand?
Yes: A 19.5% rental rate indicates that nearly one-fifth of the population in McGraw, NY, are renters. While the Days on Market (DOM) is not available, a significant portion of renters suggests steady demand for rental properties, including those under the Section 8 program.
No: Without knowing the DOM, it's hard to assess the exact speed of property turnover. However, a lower percentage of renters might suggest less demand, making it harder to find tenants, especially those participating in the Section 8 program.
It Depends: The lack of DOM data makes it difficult to gauge how quickly properties are rented out. Consider the broader economic conditions and the local housing market to determine if the 19.5% rental rate translates into sufficient demand.
In conclusion, ZIP 13101 presents a mixed picture for Section 8 investments. The FMR covers debt service on a $171,377 property, and the market rent is below the FMR, which could be advantageous. However, the demand for rentals hinges on the unknown DOM metric and broader economic factors.
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.