Location: Hamilton County, 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 | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $591,238 | 0.26% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 13360 provides insights into potential investment opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for fiscal year 2024 is set at $910 per month. To annualize this figure, we multiply it by 12, resulting in an annual rent income of $10,920. Given the median home value of $374,842, the implied gross yield for a property rented under the Section 8 program would be approximately 2.91%. This calculation is derived by dividing the annual rent income by the median home value.
In contrast, the market rent for a 2-bedroom apartment in ZIP 13360 is currently not available. However, if we were to consider the typical scenario where market rents are higher than FMRs, we can infer that the gross yield would likely exceed 2.91%, potentially offering a more attractive return on investment. For instance, if market rents were to approximate $1,200 per month, the annualized rent would be $14,400, leading to a gross yield of about 3.84% when compared against the median home value.
The gross yield comparison between the Section 8 scenario and the hypothetical market rent scenario clearly shows that renting at market rates could provide a significantly higher return. However, the decision must also take into account the local rental market dynamics. With a renter density of 11.7%, the demand for rentals in ZIP 13360 is relatively low, suggesting that landlords might find it challenging to attract tenants at market rates without substantial vacancy periods. The Days on Market (DOM) data being not available further complicates the assessment of how quickly properties can be rented out at either rate.
Given these considerations, while the market rent scenario offers a better gross yield, the practicality of achieving such rents in ZIP 13360 remains uncertain due to the low renter density. Therefore, for most investors, the Section 8 program, despite its lower gross yield, may present a more stable and predictable source of income, especially if they prioritize minimizing vacancy risk over maximizing returns.
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.