Location: Utica-Rome, NY | Metro: Utica-Rome, 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 | $1,000 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $210,448 | 0.62% | D |
| 3BR | $1,570 | $275,609 | 0.57% | F |
| 4BR | $1,810 | $357,153 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 13338, Forestport, NY, reveals a distinct picture when comparing the federal market rent (FMR) and the actual market rent. Using the annualized 2BR FMR of $1070 for fiscal year 2024, the implied gross yield can be calculated. Given that the median home value in the area is $211,214, the annualized FMR represents an income of $12,840 per year. This translates to a gross yield of approximately 6.1% ($12,840 / $211,214).
In contrast, using the market rent figure of $640, which comes from the Census ACS data, the annualized market rent is $7,680 per year. This yields a gross income of roughly 3.6% ($7,680 / $211,214). The difference between these two gross yields highlights the potential disparity between federally subsidized rents and the local market rates.
Given the 10.3% renter density in Forestport, NY, it's important to consider how realistic these figures are in the context of the local rental market. While the FMR scenario presents a higher gross yield, the actual market conditions suggest that landlords might find it challenging to attract tenants willing to pay the higher Section 8 rate in an area where only a small fraction of residents are renters. Moreover, the N/A-day DOM (days on market) indicates incomplete data regarding how quickly properties are typically rented out, which could affect the reliability of the higher FMR yield.
The lower gross yield based on the market rent of $640 is likely more reflective of the current rental environment in Forestport, NY. This scenario aligns better with the observed renter density and suggests a more stable, albeit less lucrative, investment opportunity for landlords and small-portfolio investors. However, the higher gross yield associated with the FMR should not be dismissed entirely, as it might still appeal to those who can secure long-term, stable tenancy through Section 8.
To summarize, while the FMR scenario offers a gross yield of about 6.1%, the market rent scenario provides a more modest gross yield of around 3.6%. For most investors, the latter may present a more practical outlook, especially considering the low renter density and the limited data on rental turnover times.
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.