Location: Cortland County, 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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $162,135 | 0.68% | D |
| 3BR | $1,390 | $213,514 | 0.65% | D |
| 4BR | $1,810 | $225,999 | 0.8% | C |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1020 for ZIP code 13862 (Whitney Point, NY) in fiscal year 2024 will sufficiently cover the mortgage on a median-priced home valued at $189,048. To address this concern, consider that the FMR represents the maximum amount a landlord can charge for a unit under the Section 8 program. While it's true that an FMR of $1020 may not cover the entire mortgage payment, especially if the home is financed at a high interest rate, it can still provide a stable income source. Moreover, the FMR is adjusted annually to reflect changes in the housing market, potentially increasing in future years.
The investor might also be concerned about the level of rental demand in Whitney Point, which stands at 23.8%. This percentage suggests that a significant portion of the housing stock is rented out, but it's important to note that a lower rental demand does not necessarily indicate a poor investment opportunity. The demand for Section 8 housing can be steady due to the guaranteed income stream and the federal government's involvement in ensuring timely payments. Additionally, the relatively low rental demand could mean less competition among landlords, making it easier to fill vacancies.
A final objection could be whether the Housing Choice Voucher Program will keep up with the market rents, currently set at $851. The voucher program aims to subsidize rent for low-income families, with the tenant typically paying 30% of their income toward rent. If the market rents rise faster than the FMR, landlords might face a shortfall. However, the FMR is designed to be a reasonable estimate of what a landlord should expect to receive under the program. In practice, many landlords find that the combination of the voucher subsidy and the tenant's contribution is sufficient to cover their costs, including maintenance and utilities.
In summary, while the FMR of $1020 in ZIP 13862 may not entirely cover the mortgage on a median-priced home, it offers a reliable income stream. The rental demand at 23.8% indicates a niche market with potential stability. Lastly, the Housing Choice Voucher Program is intended to ensure that rents remain affordable, though market conditions could pose challenges. These points highlight both the opportunities and the considerations for investing in Section 8 properties in Whitney Point, NY.
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.