Location: Otsego County, NY | Metro: Otsego County, NY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 13834 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent, which is currently unavailable. The FMR for the metro area for fiscal year 2026 is set at $1,150. This figure is crucial for landlords and small-portfolio investors as it represents the maximum rental amount that can be charged to voucher holders under the Section 8 program.
Given the lack of specific market rent data, we must rely on the FMR to guide our investment strategy. In this scenario, the FMR stands as a benchmark, indicating the potential rental income from voucher tenants. However, without precise market rent figures, it's challenging to quantify the exact percentage gap between FMR and market rates. Typically, if the FMR exceeds the market rent, properties become attractive for investors seeking stable yields through government-backed rental payments.
In ZIP 13834, the absence of renters (0.0%) suggests a predominantly owner-occupied area, with a median income of $37,153. This economic profile implies that any rental property, especially those participating in the Section 8 program, could face challenges in attracting non-voucher tenants willing to pay market rates. Consequently, landlords might need to adjust their expectations regarding rental income, recognizing that voucher tenants provide a reliable but potentially lower-than-market-rate revenue stream.
The cost of housing voucher tenants below open-market rates means landlords must weigh the benefits of guaranteed rent against the opportunity cost of higher market rents. While voucher tenants offer financial stability, landlords should consider the impact of long-term below-market rental rates on property value and cash flow. For small-portfolio investors, this scenario presents an opportunity to stabilize cash flows with a low-risk tenant base, albeit at a lower yield compared to open-market rentals.
To summarize, the Section 8 program in ZIP 13834 offers a clear rental rate of $1,150, providing a stable income source for landlords. However, the absence of market rent data and the low renter population percentage mean that investors must carefully evaluate the trade-offs between stability and yield when considering Section 8 participation.
Data Sources: FMR data from HUD (2027). 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.