Location: Montgomery County, NY | Metro: Fulton County, NY
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 | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $151,698 | 0.67% | D |
| 3BR | $1,250 | $167,014 | 0.75% | D |
| 4BR | $1,380 | $181,500 | 0.76% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 13452, Saint Johnsville, NY, reveals an interesting picture when comparing the Federal Market Rent (FMR) to the actual market rent. For a two-bedroom unit, the annualized FMR for fiscal year 2026 is set at $1,020, while the Census ACS data indicates a market rent of $763 per month.
To calculate the implied gross yield, we first multiply these monthly rents by 12 to get annual figures. The annual FMR comes to $12,240, and the annual market rent totals $9,156. Given the median home value in Saint Johnsville is $143,152, the gross yield based on the FMR would be approximately 8.55%. This is calculated by dividing the annual FMR ($12,240) by the median home value ($143,152).
Conversely, the gross yield using the market rent figure would be around 6.40%. This calculation divides the annual market rent ($9,156) by the median home value ($143,152).
The disparity between these two yields highlights the potential financial benefits of participating in the Section 8 program over renting at market rates. However, the decision to participate should also consider the local rental market dynamics. With a renter density of 21.8%, it's clear that a significant portion of the population in Saint Johnsville relies on rental housing. This statistic suggests that there is a demand for affordable housing, which aligns well with the principles of the Section 8 program.
The fact that the Days on Market (DOM) is listed as N/A implies either a very tight rental market where units are filled quickly, or a lack of sufficient data to determine average DOM. In either case, the higher gross yield from the FMR scenario makes it a more attractive option for landlords and small-portfolio investors looking to maximize returns. However, the choice ultimately depends on individual investor goals and risk tolerance, as the Section 8 program comes with its own set of regulatory requirements and considerations.
In conclusion, the gross yield derived from the FMR is significantly higher at 8.55% compared to the 6.40% yield from market rent. This suggests that, under the Section 8 program, properties in ZIP 13452 can generate better cash flows, assuming the regulatory conditions are met and maintained.
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.