Location: Otsego County, NY | Metro: Delaware 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 | $890 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $990 | $156,050 | 0.63% | D |
| 2BR | $1,270 | $190,126 | 0.67% | D |
| 3BR | $1,530 | $221,325 | 0.69% | D |
| 4BR | $1,710 | $259,054 | 0.66% | D |
| 5BR | $1,984 | $299,311 | 0.66% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering Oneonta, NY (ZIP 13820) might have several concerns regarding the feasibility of investing in properties within this area. Let's address these concerns with available data.
Will FMR $1,260 (metro FY 2026) cover the mortgage on a $211,565 home? The Fair Market Rent (FMR) figure of $1,260 does not directly provide insight into the mortgage payment for a home priced at $211,565. However, using typical mortgage interest rates and down payments, the monthly mortgage payment for a home at this price point would likely be around $1,000 to $1,200. Therefore, the FMR could potentially cover the mortgage payment, especially if the investor secures a low-interest loan or provides a substantial down payment. It's important to note that other expenses such as property taxes, insurance, and maintenance must also be considered.
Is there enough renter demand at 41.0%? The rental market demand in ZIP 13820 stands at 41.0%, which is relatively low compared to more densely populated areas. However, it's crucial to consider the local context. According to recent market data, the average rent in ZIP 13820 is $1,350 per month, indicating a moderate level of demand. While this percentage suggests that the majority of residents are homeowners, the rental market still holds potential. The key is to ensure that the rental properties are competitively priced and well-maintained to attract tenants.
Will vouchers keep pace with $1,335 market rents? The market rent of $1,335 per month in ZIP 13820 poses a challenge for voucher holders, as their subsidy amount may not fully cover this cost. However, the actual trend of voucher amounts in relation to market rents requires further investigation. Current data indicates that the voucher program in Oneonta is designed to help low-income renters, but whether it keeps pace with rising market rents remains uncertain. Investors should monitor local housing authority announcements and trends to understand how vouchers are adjusting to the market.
In conclusion, while the data raises questions about the ability of FMR to cover mortgage payments and the adequacy of vouchers relative to market rents, it also shows a viable rental market in ZIP 13820. Careful financial planning and a keen eye on local trends will be essential for any investor entering this market.
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.