Location: Utica-Rome, NY | Metro: Syracuse, 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 | $900 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,540 | $226,142 | 0.68% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 13402 reveals a detailed picture that can guide landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 13402 for fiscal year 2024 is set at $1060 per month. This annualizes to $12,720 per year. In contrast, the market rent for a similar property, based on Census ACS data, is $942 per month, or $11,304 annually.
To determine the gross yield, we need to consider these figures against the median home value of $206,048. When using the FMR figure, the implied gross yield is approximately 6.17%. This is calculated by dividing the annualized FMR ($12,720) by the median home value ($206,048). On the other hand, when using the market rent figure, the implied gross yield drops to about 5.49%, calculated by dividing the annualized market rent ($11,304) by the median home value ($206,048).
Given the 14.2% renter density in ZIP 13402, it's important to note that the demand for rental properties, including those participating in the Section 8 program, is relatively low compared to areas with higher renter populations. Additionally, the N/A-day Days on Market (DOM) suggests there isn't enough recent data to draw conclusions about how quickly properties are being rented out. However, considering the lower renter density, the market rent scenario is likely more realistic for most investors.
The gross yield comparison between the FMR and market rent figures highlights a significant difference. While the FMR offers a slightly higher yield, the reality of the local rental market, characterized by lower renter density, suggests that the market rent figure is a more accurate representation of what landlords and small-portfolio investors can expect. This means that the effective gross yield would be closer to 5.49% rather than 6.17%.
In summary, the gross yields derived from the FMR and market rent figures provide a clear comparison. For ZIP 13402, the market rent of $942 per month implies a gross yield of 5.49%, while the FMR of $1060 per month suggests a gross yield of 6.17%. Given the context of the local rental market, the market rent scenario offers a more practical outlook for potential investors.
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.