Location: Cayuga County, NY | Metro: Cayuga County, NY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 13117 reveals some critical insights into the potential rental income for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in the area is set at $1,180 annually for fiscal year 2026, reflecting the metro average. In contrast, the market rent based on Census ACS data stands at $583 per month.
To derive the implied gross-yield for both scenarios, we must first consider the annualized rents. For the Section 8 scenario, the annual rent would be $1,180 multiplied by 12 months, equating to $14,160 per annum. If we were to use the market rent figure, it would amount to $7,000 annually ($583 x 12).
The median home value for ZIP 13117 is not available, making it challenging to calculate an exact cap rate. However, we can still compare the gross yields. With a higher annual rent under Section 8 at $14,160 versus the market rent of $7,000, the gross yield for Section 8 properties is significantly better. This is particularly important given the 31.9% renter density in the area, indicating that there is a substantial portion of the population likely to seek rental accommodation.
The lack of Days on Market (DOM) data further complicates the analysis, but the disparity in gross yields suggests that Section 8 properties offer a more stable and potentially higher return on investment compared to market-rate rentals. Given the higher renter density, Section 8 tenants provide a reliable source of income, reducing the risk associated with vacancy rates. Landlords should focus on the Section 8 program to maximize their returns in ZIP 13117.
In summary, the gross yield from Section 8 properties in ZIP 13117 is superior to that of market-rate rentals. The annualized rent of $14,160 under Section 8 far outpaces the $7,000 from market-rate properties, offering a clearer path to profitability despite the missing median home value and DOM data points.
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.