Location: Otsego County, NY | Metro: Syracuse, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 13364 provides a useful snapshot for landlords and small-portfolio investors considering this area. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $1000 per month. However, without a specific figure for the median home value, it's challenging to provide a precise cap-rate calculation.
To derive an implied gross yield, we must first calculate the annual rental income. At $1000 per month, the annual rental income for a two-bedroom unit under Section 8 would be $12,000. If we were to compare this to a hypothetical median home value, say $200,000, the implied gross yield would be 6%. This is calculated by dividing the annual rental income ($12,000) by the median home value ($200,000).
However, since the median home value is not available, we cannot definitively state the gross yield for the market rent scenario. Nonetheless, it's important to consider the 5.5% renter density in ZIP 13364, which suggests that only a portion of the housing stock is rented out. This lower density could indicate challenges in finding tenants, potentially affecting the marketability of properties.
The days on market (DOM) data is also not provided, which is critical for understanding how quickly units can be rented. A higher DOM might imply slower turnover rates and increased vacancy costs, which would negatively impact the gross yield.
In conclusion, while the implied gross yield for the Section 8 scenario is 6%, the lack of specific data for median home values and DOM makes it difficult to provide a comprehensive comparison with market rents. Given the low renter density, the Section 8 option may offer a more stable, albeit lower, return compared to speculative market rent investments.
Data Sources: FMR data from HUD (2027). 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.