Location: Otsego County, NY | Metro: Otsego County, NY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 13488 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. However, due to the unavailability of current market rent data, we must rely solely on the FMR, which stands at $1,220 per month for the fiscal year 2026.
In the absence of market rent figures, it's critical to understand that the FMR represents the maximum amount a landlord can charge for a Section 8 voucher tenant. This means if the market rent were higher than $1,220, accepting Section 8 tenants would result in renting properties below the market rate, thus reducing potential rental income.
The zip code has a relatively low percentage of renters at 4.5%, indicating a predominantly owner-occupied area. With a median household income of $52,159, the financial capacity of residents to pay market rents is moderate, suggesting that landlords might face challenges in attracting non-voucher tenants willing to pay above the FMR.
If the FMR exceeds the market rent: This scenario would make ZIP 13488 a yield play for landlords who accept Section 8 tenants. They could potentially earn more than what they would typically receive from the open market, thereby maximizing their returns on investment. The high FMR relative to market rents translates into a guaranteed income stream that is above average for the area.
If the FMR falls below the market rent: Landlords accepting Section 8 tenants would be renting out their units at a discount compared to what the market could bear. This could lead to a loss of income potential, especially if the difference is significant. For instance, if the market rent were hypothetically $1,500, the landlord would be losing out on $280 per unit, or approximately 18.7%, each month.
Given the lack of precise market rent data, the analysis leans towards caution. Accepting Section 8 tenants in ZIP 13488 requires a strategic decision based on the potential income versus the cost of maintaining the property. Landlords should consider the stability of rental payments through vouchers versus the risk of vacancy in an area where only 4.5% of the population are renters.
Data Sources: FMR data from HUD (2027). 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.