Location: Syracuse, NY | Metro: Syracuse, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
The Section 8 cap rate analysis for ZIP code 13119 reveals a challenging investment environment due to limited data points. For a two-bedroom property, the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $1150 per month. This figure annualizes to $13,800, providing a baseline for rental income expectations under the Section 8 program.
However, the absence of market rent data for ZIP 13119 makes it difficult to compare the Section 8 rates with what could be achieved in the open market. Without this comparison, it's impossible to calculate an accurate gross yield that reflects the potential upside of renting outside the Section 8 framework. The median home value in the area is also not available, which is crucial for understanding the overall property values and thus the cap rate.
The implied gross yield from the Section 8 program can be estimated using the annualized FMR. If we assume the median home value is comparable to nearby areas, say around $200,000 (a hypothetical figure for illustration purposes), the gross yield would be approximately 6.9%. This calculation is based on the formula: (Annualized FMR / Median Home Value) * 100. However, without the actual median home value, this yield remains speculative.
Given the lack of precise market rent data, it's challenging to determine whether renting outside the Section 8 program would offer a significantly higher gross yield. Typically, higher renter density and shorter days on market (DOM) indicate a stronger rental market, which could support higher rents. However, with renter density at N/A% and DOM at N/A days, these indicators cannot be used to make a definitive assessment.
In conclusion, while the Section 8 program offers a guaranteed $13,800 annual rental income for a two-bedroom unit in ZIP 13119, the lack of comprehensive market data hinders a full cap rate analysis. Investors should seek additional local market insights before making decisions, especially regarding the potential for higher yields through market-rate rentals.
Data Sources: FMR data from HUD (2027).
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.