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 | $810 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $222,254 | 0.48% | F |
| 3BR | $1,270 | $282,185 | 0.45% | F |
| 4BR | $1,470 | $348,646 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 13354, Holland Patent, NY, reveals a nuanced picture when comparing the Federal Market Rent (FMR) and market rent against the median home value. For a two-bedroom unit, the annualized FMR is $10,920 ($910 per month), while the market rent is $10,476 ($873 per month).
To derive the gross yield, we divide these annual rents by the median home value of $272,303. The gross yield based on the FMR is approximately 4%. In contrast, using the market rent, the gross yield drops slightly to around 3.85%.
The higher gross yield derived from the FMR scenario suggests that Section 8 housing might be more profitable compared to market rent. However, the reality of the situation must also consider the local rental market dynamics. With only 11.2% of the population being renters, the demand for rental properties, including those participating in the Section 8 program, is relatively low. This low renter density implies that landlords may face challenges in finding tenants willing to pay the FMR rates, making the lower market rent gross yield of 3.85% more reflective of the actual rental environment.
The N/A-day Days on Market (DOM) indicates incomplete data, which could suggest either a very quick turnover or an underreported metric. Given the low renter density, it's plausible that the turnover rate is slow, and landlords should expect longer periods between tenancies. This factor, combined with the conservative market rent, suggests that the 3.85% gross yield is more realistic for potential investors considering Section 8 participation in this area.
In conclusion, while the FMR provides a higher gross yield of 4%, the local rental market conditions, characterized by low renter density, point towards a more practical gross yield closer to the market rent figure of 3.85%. Investors should adjust their expectations accordingly and factor in the potential difficulties of tenant acquisition when evaluating the profitability of Section 8 properties in ZIP 13354.
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.