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 | $1,020 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $222,765 | 0.65% | D |
| 3BR | $1,720 | $261,061 | 0.66% | D |
| 4BR | $1,950 | $321,134 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 13461, Sherrill, NY, provides a clear picture of the financial landscape for potential investments. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $1,110 annually, while the market rent, based on Census ACS data, is $1,122 per month.
To calculate the implied gross yield, we first annualize the market rent figure: $1,122 multiplied by 12 months equals $13,464 per year. Comparing this to the median home value of $251,379, the implied gross yield is approximately 5.36%. For the Section 8 scenario, using the FMR of $1110 per month, the annual rent is $13,320, resulting in an implied gross yield of about 5.30% when compared to the median home value.
The slight difference between the two yields—5.36% for market rent versus 5.30% for Section 8—is marginal. However, considering the 27.1% renter density in the area, it suggests that a significant portion of the population may be seeking rental assistance, making the Section 8 scenario more realistic for this ZIP code. Additionally, the N/A-day Days on Market (DOM) indicates that properties are likely selling quickly, possibly due to limited inventory, which supports the idea that rental assistance programs could be in high demand.
In conclusion, while both the market and Section 8 scenarios present similar gross yields, the higher renter density and quick property sales suggest that the Section 8 yield of 5.30% is a more accurate representation of the investment environment in Sherrill, NY. Landlords and small-portfolio investors should consider these factors when evaluating potential returns in this market.
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.