Location: Lewis County, NY | Metro: Watertown-Fort Drum, 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 | $950 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,040 | $103,830 | 1% | B |
| 2BR | $1,360 | $157,860 | 0.86% | C |
| 3BR | $1,870 | $205,127 | 0.91% | C |
| 4BR | $2,220 | $240,733 | 0.92% | C |
| 5BR | $2,575 | $286,992 | 0.9% | C |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 13601, which encompasses parts of Watertown, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1270, while the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1294. This means there is a $24 difference, representing a 1.89% gap between the two figures.
In the context of Watertown, where 51.4% of residents are renters and the median home value is $194,452, landlords might be inclined to view this gap as an opportunity to increase their rental yields. However, since the FMR is lower than the market rent, it also highlights the potential financial burden landlords may face when accepting housing vouchers. The discrepancy implies that landlords could be renting properties below the open-market rate, which can affect profitability given the local economic conditions.
Watertown's median income of $58,791 provides insight into the financial landscape. While the FMR is designed to reflect affordable rental costs, it does not always align with the actual rents charged in the market. Landlords who accept Section 8 vouchers must understand that they will receive a fixed amount, which may not cover the full market rent, thus reducing their income compared to what they could earn from a non-voucher tenant.
Despite the lower FMR, the Section 8 program offers stability and timely payments, which can be advantageous for landlords looking to manage cash flow and reduce vacancy rates. The decision to participate should weigh the benefits of guaranteed occupancy against the reduced rental income. For small-portfolio investors, the choice to engage with Section 8 tenants should be made with careful consideration of these factors and the broader economic environment in Watertown.
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.