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 | $810 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $174,151 | 0.67% | D |
| 3BR | $1,470 | $204,822 | 0.72% | D |
| 4BR | $1,700 | $240,799 | 0.71% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 13811, centered around Newark Valley, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 13811 in fiscal year 2024 is set at $1120, while the Census American Community Survey (ACS) indicates that the average market rent stands at $826. This means there is a difference of $294 per month, or approximately 35.5%, between what landlords can charge through the Section 8 program and the typical rental price.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors should recognize the potential for enhanced yields when participating in the Section 8 program. By renting to voucher holders, landlords can secure higher monthly payments compared to the local market rate, thereby increasing their rental income and potentially improving their cash flow. Given that only 11.6% of residents in Newark Valley are renters, the competition for rental properties is relatively low, making it easier to attract tenants who qualify for the Section 8 vouchers.
The median home value in Newark Valley is $186,882, which suggests that homeownership is more common and affordable. However, the median income of $78,418 might not be sufficient for all residents to afford homeownership, thus making rental assistance programs like Section 8 particularly relevant. For landlords, the decision to accept Section 8 tenants at a rate above the market rent can be a strategic move to capitalize on federal subsidies and ensure steady occupancy.
Moreover, the financial support provided by the Section 8 program helps mitigate the risk of tenant delinquency or default, given that the government guarantees payment of the approved portion of the rent. This stability is crucial for maintaining positive cash flow and ensuring long-term profitability in a region where rental demand is not as high as in urban centers.
It's important to note that while the FMR offers a higher rate than the current market rent, landlords must still comply with the program's requirements, such as undergoing regular inspections and maintaining property standards. Nonetheless, the opportunity to receive $1120 per month, significantly above the $826 market rent, presents a compelling reason for landlords to consider accepting Section 8 tenants in their investment strategy.
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.