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 | $1,100 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $153,615 | 1.02% | B |
| 3BR | $1,900 | $180,374 | 1.05% | B |
| 4BR | $2,060 | $208,927 | 0.99% | C |
| 5BR | $2,390 | $268,234 | 0.89% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 13207 in Syracuse, NY, provides valuable insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $1130 per month, while the market rent based on Census ACS data stands at $1142 per month. To derive the cap-rate, we need to annualize these figures and compare them against the median home value of $166,730.
Annualizing the FMR, we get $13,560 ($1130 x 12 months), and for the market rent, it's $13,704 ($1142 x 12 months). The implied gross yield for the FMR scenario is approximately 8.1%, calculated as $13,560 divided by $166,730. For the market rent scenario, the gross yield increases slightly to about 8.2%, calculated as $13,704 divided by $166,730.
The difference between these two yields is minimal, reflecting the close alignment of the FMR and market rent in ZIP 13207. However, given the renter density of 33.7%, it is more realistic to consider the FMR scenario. This lower density suggests that not all units will be occupied by renters, and Section 8 tenants provide a stable income source. Additionally, the N/A-day DOM (days on market) indicates either a very fast or slow rental market, which could affect vacancy rates and thus the reliability of market rent estimates.
In conclusion, while both the FMR and market rent offer similar gross yields, the FMR scenario is more reliable for investors looking to secure steady cash flows through Section 8 participation. The slight edge in yield from market rents does not outweigh the benefits of guaranteed occupancy and consistent income provided by Section 8.
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.