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 | $890 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $180,056 | 0.69% | D |
| 3BR | $1,490 | $210,151 | 0.71% | D |
| 4BR | $1,690 | $219,203 | 0.77% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into Yorkville, NY (ZIP 13495), might have several concerns regarding the feasibility of investing in this area under the Section 8 program. Let's address these concerns with the available data.
Will FMR $940 (zip FY 2024) cover the mortgage on a $193,755 home?
The Fair Market Rent (FMR) for a one-bedroom apartment in ZIP 13495 for fiscal year 2024 is set at $940. This amount must be compared against the expected monthly mortgage payment to determine if it's sufficient. For a home priced at $193,755, assuming a 20% down payment and a standard 30-year fixed-rate mortgage at an average interest rate of 4%, the monthly mortgage payment would be approximately $740. The FMR of $940 exceeds this amount, indicating that it could indeed cover the mortgage payment comfortably, leaving a buffer for maintenance and other costs.
Is there enough renter demand at 35.4%?
The rental vacancy rate in ZIP 13495 stands at 35.4%. While this percentage is relatively high, it does not necessarily indicate a lack of demand. A higher vacancy rate can suggest that there are ample opportunities for new rentals to enter the market without significantly impacting existing vacancy rates. However, the data alone does not provide a complete picture of the demand for Section 8 housing specifically. Additional research into the local population's need for subsidized housing would be required to fully assess this concern.
Will vouchers keep pace with $1,024 market rents?
The market rent for a two-bedroom apartment in ZIP 13495 is $1,024 per month. Given that the FMR for a one-bedroom is $940, it's reasonable to assume that the voucher amounts will closely follow the FMR guidelines. In areas where the market rent exceeds the FMR, landlords may struggle to find tenants willing to pay the difference out-of-pocket. Therefore, it's likely that vouchers will not fully cover the $1,024 market rent, potentially leaving landlords with a shortfall. To mitigate this risk, landlords should consider properties that fall within or slightly above the FMR range to ensure they can attract tenants with vouchers.
In conclusion, while the data suggests that the FMR can cover mortgage payments for homes around the $193,755 price point, the high rental vacancy rate requires further investigation into the specific demand for Section 8 housing. Lastly, vouchers are unlikely to cover the entire market rent of $1,024, necessitating careful consideration when selecting properties for investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.