Location: Binghamton, NY | Metro: Binghamton, 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 | $790 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,420 | $216,076 | 0.66% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1100 for ZIP 13744 can sufficiently cover the mortgage on a home valued at $198,855. This concern is valid, but let's break it down. The FMR is the benchmark set by HUD for determining payment standards under the Section 8 program. Assuming a typical mortgage rate of around 4%, the annual mortgage cost for a home priced at $198,855 would be approximately $9,554, which translates to a monthly payment of roughly $796. At an FMR of $1100, the rent collected would exceed the mortgage payment, providing a buffer that could cover property taxes, insurance, maintenance, and leave a modest profit.
The investor may also doubt if the renter demand at 10.4% is sufficient. This percentage represents the share of households that are renters in the area. While 10.4% might seem low, it's important to consider the total number of households in ZIP 13744. If there are, say, 10,000 households, then 10.4% equates to 1,040 rental units, which is a significant base of potential tenants. Moreover, the demand for affordable housing often remains stable regardless of overall rental market conditions, as it serves a critical need for low-income families.
A final objection could be whether the voucher amounts will keep pace with the market rents of $831. Currently, the average voucher amount is less than the market rent, indicating that vouchers might not fully cover the cost. However, HUD adjusts voucher amounts annually based on the local market conditions. If the trend continues, and given the historical adjustments, it's reasonable to expect that voucher amounts will rise to meet or closely approximate the market rents, ensuring that landlords are adequately compensated.
Note that while the data provides a snapshot of the situation, it does not account for all variables such as property management costs, vacancy rates, or changes in local economic conditions. These factors should also be considered in making an informed investment decision.
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.