Location: Lewis 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 | $810 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $174,120 | 0.61% | D |
| 3BR | $1,410 | $215,232 | 0.66% | D |
| 4BR | $1,600 | $236,745 | 0.68% | D |
| 5BR | $1,856 | $268,831 | 0.69% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 13367, Lowville, NY, might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Here, we address those key objections with the available data.
Objection 1: Will FMR $980 (zip FY 2024) cover the mortgage on a $198,274 home?
The Fair Market Rent (FMR) for ZIP 13367 in fiscal year 2024 is set at $980. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit. To determine if this covers the mortgage on a $198,274 home, consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a $198,274 loan would be approximately $987. This means that the FMR does not fully cover the mortgage payment, falling short by $7 per month. However, it's important to note that property taxes, insurance, and maintenance costs also need to be factored into the overall expense. These additional costs could make the investment less profitable without supplementary income sources.
Objection 2: Is there enough renter demand at 26.8%?
The rental vacancy rate in ZIP 13367 stands at 26.8%. This percentage indicates the proportion of rental units that are unoccupied. A higher vacancy rate suggests lower demand for rentals. For context, a vacancy rate below 5% is generally considered a tight market, while a rate above 10% indicates a surplus of rental properties. At 26.8%, the market in Lowville is quite soft, which could pose challenges for filling units and maintaining consistent occupancy. Landlords must weigh this against the potential for lower competition and possibly lower rental prices, which might attract tenants seeking affordable housing options.
Objection 3: Will vouchers keep pace with $789 market rents?
The market rent for ZIP 13367 is $789, slightly below the FMR. While the Housing Choice Voucher program aims to cover market rents, the actual amount paid by vouchers can lag behind due to funding constraints and administrative delays. The data does not provide a direct comparison between voucher amounts and market rents for this specific ZIP code. Therefore, it is uncertain whether vouchers will consistently match the $789 market rent. Investors should monitor local housing authority announcements and budget allocations to gauge future trends and adjustments in voucher payments.
In conclusion, while the data provides insights into the financial aspects of renting under the Section 8 program in ZIP 13367, it highlights the need for careful consideration of mortgage coverage, tenant demand, and the reliability of voucher payments in keeping up with market rents. Each of these factors plays a crucial role in determining the viability of such investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.