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 | $920 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $179,581 | 0.72% | D |
| 3BR | $1,550 | $215,795 | 0.72% | D |
| 4BR | $1,760 | $229,462 | 0.77% | D |
| 5BR | $2,042 | $220,070 | 0.93% | C |
U.S. Census Bureau data (2024)
The Section 8 thesis for properties in ZIP code 13502, located in Utica, NY, revolves around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1,020, while the market rent, as indicated by the Zillow Rent Index (ZORI), is $1,297. This creates a gap of $277 per month, which translates to approximately 27% below the market rate.
Given that the FMR is lower than the market rent, it's crucial to understand the implications for landlords and small-portfolio investors. Housing voucher tenants typically pay a portion of their income towards rent, with the government covering the remainder up to the FMR. In Utica, where the median income is $57,835, voucher holders might only contribute about 30% of their income towards rent, which amounts to roughly $482 per month. The landlord would then receive the difference up to the FMR, making the total rental payment $1,020.
This scenario presents several challenges. First, the landlord receives less than the market rate, which can impact profitability. Second, the administrative burden of participating in the Section 8 program includes regular inspections, compliance with HUD standards, and timely submission of documentation. Additionally, the median home value in Utica is $201,600, suggesting that property values may be relatively stable but also indicating that the cost of living and maintenance could be significant relative to the rental income received.
In Utica, where 40.8% of residents are renters, the demand for affordable housing is high. However, the supply of Section 8 vouchers does not always match this demand, leading to waiting lists and potential turnover issues. Despite these challenges, the consistent income provided by the government-backed vouchers can offer a predictable cash flow, which is attractive for some investors seeking stability over higher yields.
To summarize, the gap between the FMR and market rent in ZIP 13502 is $277, or 27%. This means that landlords accepting Section 8 vouchers will earn below the market rate, which must be weighed against the benefits of guaranteed and stable income from the government program. The local context of high rental demand and moderate property values supports the viability of such investments, though they come with unique considerations and potential drawbacks.
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.