Location: Binghamton, NY | Metro: Binghamton, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
To decide whether you should invest in ZIP code 13762 (Unknown, NY) for Section 8 properties, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1140 for the fiscal year 2024 cover the debt service on your potential property? This is critical because if the FMR does not exceed the monthly mortgage payment and other expenses, investing in this area would not be financially viable. Without specific property details, we cannot provide an exact answer, but you must ensure that the FMR covers all costs associated with owning the property.
Step 2: Compare the market rent to the FMR. If the market rent is above $1140, then non-Section 8 tenants might be willing to pay more, which can be beneficial. However, if the market rent is at or below $1140, you will likely need to rely solely on the FMR to cover your costs. The success of your investment hinges on whether you can find properties where the FMR meets or exceeds the necessary income to break even or profit.
Step 3: Assess the demand for rental properties. Look at the percentage of renters and the days on market (DOM) for vacant units. If the percentage of renters is high and the DOM is low, there is strong demand, making it a good location for Section 8 properties. Conversely, if the percentage of renters is low and the DOM is high, demand is weak, and this ZIP code may not be suitable for your investment strategy. Specific figures are needed to make an informed decision, but generally, a higher percentage of renters and lower DOM indicate a more favorable market.
If you can confidently answer "yes" to Step 1 and Step 2, and the data shows sufficient demand in Step 3, then you should proceed with buying in ZIP 13762. Otherwise, the decision depends on how closely you can align your property's financials with the available data.
Data Sources: FMR data from HUD (2027).
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.