Location: St. Lawrence County, NY | Metro: St. Lawrence County, NY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap rates for ZIP code 13696 reveals several key points that landlords and small-portfolio investors should consider. The annualized Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $1,270 per month. However, the median home value and the market rent for the same area are currently not available.
To derive the rough cap-rate picture, we must first understand the concept of a cap rate, which is the ratio of net operating income produced by an asset to its capital cost or original purchase price. In the context of Section 8 housing, the cap rate can be approximated by calculating the gross yield, which is the annual rental income divided by the property's value.
In the scenario where the market rent is unknown, the gross yield is calculated using the Section 8 FMR. For a two-bedroom unit, the annual rental income would be $15,240 ($1,270 x 12 months). Without the median home value, it's impossible to calculate the exact gross yield; however, if we assume a hypothetical median home value, say $200,000 for illustration purposes, the gross yield would be 7.62% ($15,240 / $200,000).
Given the 62.0% renter density in ZIP 13696, it's important to note that the majority of residents are likely renters, making the demand for affordable housing significant. The Days on Market (DOM), however, is not available, which means we cannot assess how quickly properties are typically leased in this area. This lack of information makes it difficult to determine whether the FMR-based gross yield is more or less realistic compared to a potential market rent-based yield.
While the FMR provides a baseline for rental income, it does not necessarily reflect the actual market conditions. If the market rent were higher than the FMR, the gross yield would also be higher, potentially offering better returns for investors. Conversely, if the market rent aligns closely with the FMR, the 7.62% gross yield based on our illustrative median home value becomes a more accurate expectation.
Landlords and small-portfolio investors should focus on understanding local market dynamics, including renter density and leasing speed, to make informed decisions about the potential profitability of Section 8 properties in ZIP 13696. Given the limited data, the FMR-based gross yield serves as a conservative estimate, while actual market rents could provide a more optimistic outlook.
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.