Location: Otsego County, NY | Metro: Otsego 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 | $840 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $197,544 | 0.73% | D |
U.S. Census Bureau data (2024)
The analysis for ZIP code 13335 reveals a significant gap between the Fair Market Rent (FMR) set at $1,070 for the fiscal year 2026 and the actual market rent of $1,007 based on Census ACS data. This represents a difference of $63, or approximately 6%, favoring the FMR over the market rent. For landlords and small-portfolio investors, this scenario transforms into a yield play, where the higher FMR can be leveraged to secure greater rental income through Section 8 vouchers.
The reason behind this gap is the federal government's effort to ensure that rental assistance covers a reasonable portion of the housing market, even if it slightly exceeds the average market rate. In ZIP 13335, where 26.5% of residents are renters, and the median home value stands at $186,084, the disparity underscores the financial advantage of participating in the Section 8 program. With a median income of $65,000, many households rely on the voucher system to afford decent housing.
The higher FMR allows landlords to receive a payment closer to the true cost of maintaining properties in the area, which might otherwise be challenging when compared to the lower market rent. This makes it particularly attractive for investors looking to maximize their returns while providing affordable housing options. However, it also means that landlords must understand the administrative requirements and potential challenges associated with managing Section 8 properties.
In conclusion, the gap between the FMR and market rent in ZIP 13335 presents an opportunity for landlords and small-portfolio investors to capitalize on higher rental payments through the Section 8 program, despite the underlying market conditions. This aligns well with the local demographic, where a substantial portion of the population is already dependent on rental assistance to meet their housing needs.
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.