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 | $1,050 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $261,573 | 0.57% | F |
| 3BR | $1,820 | $333,639 | 0.55% | F |
| 4BR | $1,970 | $408,514 | 0.48% | F |
| 5BR | $2,285 | $464,628 | 0.49% | F |
U.S. Census Bureau data (2024)
In evaluating Marcellus, NY (ZIP 13108), for potential investment opportunities under the Section 8 program, several key concerns arise regarding financial viability and demand. Let's address these directly using available data.
Objection 1: Will the Fair Market Rent (FMR) of $1,110 for fiscal year 2024 be sufficient to cover the mortgage on a $329,827 home?
The FMR of $1,110 is a critical figure for determining rental income under the Section 8 program. To assess whether this amount can cover a mortgage, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $329,827 home would be approximately $1,760. This leaves a shortfall of around $650 per month between the FMR and the mortgage payment. It is important to note that this calculation does not include property taxes, insurance, maintenance, or other expenses associated with homeownership. Therefore, while the FMR may help cover part of the mortgage, it will not fully offset the cost without additional income sources or a lower mortgage amount.
Objection 2: Is there enough renter demand at 19.7%?
The percentage of renters in Marcellus, NY stands at 19.7%. This figure suggests a relatively low demand for rental properties compared to areas with higher percentages of renters. However, the demand for affordable housing remains steady, and the Section 8 program aims to fill this niche. The percentage alone does not provide a complete picture; it is essential to also consider the number of individuals and families who qualify for the Section 8 program and the vacancy rates in the area. Without specific data on these points, it is difficult to conclusively determine if the demand will be sufficient. Nonetheless, the presence of the program indicates a need for subsidized housing, which could support a portion of the rental market.
Objection 3: Will vouchers keep pace with market rents of $1,077?
The market rent of $1,077 is slightly below the FMR of $1,110, suggesting that voucher holders could potentially cover the full rent amount. However, the question of whether vouchers will keep pace with market rents over time is more complex. The U.S. Department of Housing and Urban Development adjusts FMRs annually based on local housing costs. If the local market rents increase faster than the adjustments to the FMR, there could be a gap between what vouchers cover and the actual rent charged. In Marcellus, NY, the current alignment between market rents and the FMR is positive, but long-term stability requires monitoring of both market trends and HUD adjustments.
In conclusion, while the FMR of $1,110 provides a base for rental income, it falls short of covering the full mortgage payment on a $329,827 home. The 19.7% rental rate indicates a smaller overall rental market, but the Section 8 program targets a specific segment of this market. Lastly, the current FMR covers the market rent of $1,077, but future alignment depends on the rate of change in both market conditions and federal adjustments. These considerations should guide any investment decision in this 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.