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 | $820 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $216,553 | 0.54% | F |
| 3BR | $1,380 | $261,710 | 0.53% | F |
| 4BR | $1,570 | $284,394 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 13476 (Vernon, NY) reveals interesting insights into the potential returns for landlords and small-portfolio investors. To derive the gross yield, we annualize the Fair Market Rent (FMR) and market rent figures against the median home value.
For a two-bedroom unit under the Section 8 program, the annualized FMR is $1000 per month, equating to $12,000 annually. Against the median home value of $244,586, this implies a gross yield of approximately 4.91%. The calculation is straightforward: $12,000 / $244,586 = 0.0491 or 4.91%.
In contrast, the Census ACS reports the market rent for a two-bedroom at $849 per month, which annualizes to $10,188. This translates to a gross yield of about 4.17% when compared to the median home value: $10,188 / $244,586 = 0.0417 or 4.17%.
The difference between these yields highlights the financial benefits of participating in the Section 8 program. However, the realism of these figures must be considered in light of Vernon's rental market dynamics. With a renter density of 33.5%, it suggests that over a third of the population rents their homes, indicating a moderate demand for rental properties.
The N/A-day Days on Market (DOM) data means there is insufficient information to assess how quickly rental units are typically leased in Vernon. This lack of data could imply either a stable rental market where vacancies are minimal and leases are long-term, or it might suggest that the market is less active, with fewer transactions providing reliable DOM figures.
Given the moderate renter density and the absence of detailed DOM data, the Section 8 gross yield of 4.91% appears more realistic for landlords and investors. It offers a guaranteed income stream through the federal government, reducing the risk associated with tenant defaults and market fluctuations. While the market rent yield of 4.17% is lower, it still provides a competitive return, especially if market conditions improve or if the DOM data indicates shorter vacancy periods in the future.
Investors should consider these gross yields as starting points for their own calculations, factoring in operating expenses, maintenance costs, and other variables to determine the Net Operating Income (NOI) and ultimately the cap rate. The higher yield from Section 8 can offset some of these costs, making it a potentially attractive option despite the lower figure compared to market rent.
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.