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 | $1,260 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $179,611 | 0.7% | D |
| 3BR | $1,530 | $221,043 | 0.69% | D |
| 4BR | $1,670 | $229,484 | 0.73% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 13425, Oriskany Falls, NY, reveals some interesting insights into potential investment returns. The Fair Market Rent (FMR) for a two-bedroom property in fiscal year 2024 is set at $1000 per month. When annualized, this translates to an annual rental income of $12,000. Given the median home value in the area is $199,112, the implied gross yield for a Section 8 property would be approximately 6.03%. This calculation is derived by dividing the annual rental income by the median home value.
In contrast, the market rent for a two-bedroom property, based on Census ACS data, stands at $781 per month. Annualizing this figure yields an annual rental income of $9,372. Using the same median home value of $199,112, the implied gross yield for a market-rent property is approximately 4.71%. This comparison clearly shows that Section 8 properties in ZIP 13425 offer a higher gross yield compared to market-rent properties.
However, the decision between Section 8 and market-rent properties should also consider other factors such as tenant stability and local market conditions. With a renter density of 23.3%, it suggests that a significant portion of the population owns their homes, potentially indicating a smaller pool of tenants for market-rent properties. Additionally, the N/A-day Days on Market (DOM) data implies that there might be limited data on how quickly properties are rented out, which could affect the predictability of cash flow.
Given these conditions, Section 8 properties provide a more stable source of income due to the government-backed rental assistance program. The higher gross yield of 6.03% makes Section 8 investments more attractive, especially considering the lower risk associated with guaranteed rental payments. For landlords and small-portfolio investors looking to balance risk and return, the Section 8 option in ZIP 13425 appears to be the more prudent choice.
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.