Location: Otsego County, NY | Metro: Otsego County, NY
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 | $770 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $212,406 | 0.52% | F |
| 3BR | $1,330 | $223,556 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP 13810, Mount Vision, NY, provides a clear picture of potential investment yields. To derive the cap rates, we need to calculate the gross yields based on the Fair Market Rent (FMR) and market rent figures.
Using the annualized 2BR FMR of $1,070 for FY 2026, the annual income would be $12,840. Against the median home value of $198,959, this translates into an implied gross yield of approximately 6.45%. The calculation is straightforward:
In contrast, using the market rent figure of $770 per month from the Census ACS, the annual income would be $9,240. This results in an implied gross yield of about 4.65% when compared to the median home value:
Given that the renter density in ZIP 13810 is 13.0%, it's important to note that the majority of properties are owner-occupied, which might limit the availability of rental units for Section 8 tenants. Additionally, the N/A-day DOM (days on market) indicates incomplete data regarding how quickly rental units are typically leased in this area, which could affect the reliability of the market rent figure.
The FMR-based gross yield of 6.45% is more indicative of the potential income from a Section 8 property, considering that FMRs are specifically set to reflect the rental market conditions for low-income households. However, the lower market rent-based gross yield of 4.65% should also be considered, especially if the investor aims to attract non-Section 8 tenants.
Investors must weigh these yields against their expected costs and returns. While the higher FMR-based yield might seem more attractive, the reality of the local rental market and the limited number of renters could make the market rent figure more relevant for most properties. Thus, while the FMR provides a benchmark, the actual performance of a Section 8 property in ZIP 13810 may align closer to the market rent-based gross yield.
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.