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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $161,190 | 0.66% | D |
| 3BR | $1,270 | $183,626 | 0.69% | D |
| 4BR | $1,470 | $191,525 | 0.77% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into Mohawk, NY (ZIP 13407) might have several concerns regarding the viability of renting properties under the Section 8 program. Here, we address those concerns with the available data.
The first objection is whether the Fair Market Rent (FMR) of $910 for the fiscal year 2024 will adequately cover the mortgage on a home priced at $166,233. To determine this, one must consider the typical mortgage terms and interest rates. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $166,233 home would be approximately $895. This means that the FMR does indeed cover the mortgage payment, leaving a small margin for property taxes, insurance, and maintenance costs. However, the data does not provide specifics on these additional expenses, which could impact profitability.
Another concern is the level of renter demand in the area, given that only 21.3% of households are renters. While this percentage suggests a smaller pool of potential tenants, it's important to note that the demand for affordable housing can still be significant. The data indicates that the rental market is competitive, with a vacancy rate that may be below average, implying that there is a steady demand for units despite the lower percentage of renters. Moreover, the presence of Section 8 participants can stabilize the rental market, ensuring a consistent stream of tenants.
The final objection is whether the Section 8 voucher amount will keep pace with the market rents, which are currently at $728. The FMR of $910 for 2024 is higher than the current market rent, suggesting that vouchers are likely to cover the majority of the market rate. However, the data does not specify if the voucher amount will increase proportionally to the FMR. If the voucher amount remains unchanged or increases less than the FMR, landlords might face a shortfall between the voucher payment and the actual market rent. This requires careful consideration of the long-term financial outlook for the property.
In conclusion, while the data shows that the FMR covers the mortgage payment and that there is sufficient demand for affordable housing, it also highlights uncertainties around property maintenance costs and the future trajectory of voucher amounts relative to market rents. These factors should be carefully weighed when considering investment in ZIP 13407.
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.