Location: Delaware County, 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 | $740 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $177,916 | 0.59% | F |
| 3BR | $1,370 | $206,276 | 0.66% | D |
| 4BR | $1,500 | $215,365 | 0.7% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in Deposit, New York, ZIP code 13754, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1060, while the Census ACS indicates an average market rent of $759. This means there is a $301 difference, or a 39.6% gap, between what landlords can charge under the Section 8 program and the typical rent in the area.
Given that the FMR exceeds the market rent, it is clear that voucher tenants represent a yield play for landlords and small-portfolio investors in Deposit, NY. The higher FMR allows property owners to receive a greater rental income than they would from open-market tenants, thereby increasing their overall yield. This financial advantage is particularly appealing in a region where 26.1% of residents are renters, and the median home value is $168,976. These figures suggest a moderate real estate market with potential for steady returns.
The median income in Deposit, NY, is $61,000, which underscores the importance of the Section 8 program in providing affordable housing options for low-income families. By participating in the program, landlords can tap into a stable source of rental income, supported by government subsidies, that exceeds the local market rates. However, it's crucial to note that landlords must also consider the administrative requirements and potential maintenance costs associated with housing voucher tenants.
In conclusion, the discrepancy between the FMR and market rent in Deposit, NY, makes the Section 8 program a strategic investment opportunity for landlords looking to enhance their rental yields. With the right management practices, this gap can translate into higher profitability without compromising the quality of housing provided to the community.
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.