Location: Watertown-Fort Drum, 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 | $880 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $237,235 | 0.54% | F |
| 3BR | $1,720 | $272,906 | 0.63% | D |
| 4BR | $2,110 | $305,738 | 0.69% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 13618, Cape Vincent, NY, reveals an interesting scenario when comparing the Federal Market Rent (FMR) and the market rent figures against the median home value.
Based on the annualized 2BR FMR of $1100 for FY 2024, the implied gross yield for a property in this ZIP code is approximately 4.57%. This calculation is derived from $1100 multiplied by 12 months, resulting in an annual rental income of $13,200, divided by the median home value of $240,647. In contrast, using the Census ACS reported market rent of $878 per month, the implied gross yield drops significantly to about 3.65%, calculated from an annual rental income of $10,536.
The gross-yield comparison between these two scenarios highlights a notable difference. The FMR-based yield is higher, suggesting a potentially more favorable investment scenario for landlords participating in the Section 8 program. However, the reality of rental demand must be considered. With a renter density of only 12.4%, the number of potential tenants is limited. Additionally, the lack of data on days on market (DOM) makes it difficult to assess how quickly a property might be rented out under either scenario.
Given the low renter density, the market rent figure may be more indicative of actual rental income potential. Landlords should be cautious about relying solely on the higher FMR-based gross yield without considering the likelihood of securing a tenant at that rate. The actual performance could be closer to the lower market rent yield due to the limited pool of renters.
In summary, while the Section 8 program offers a higher rental rate and thus a better gross yield, the practical considerations of rental demand suggest that the market rent yield of 3.65% might be more realistic. Investors should carefully weigh these factors before making decisions based on the potential returns.
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.