Location: Ithaca, 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 | $1,140 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,900 | $206,185 | 0.92% | C |
U.S. Census Bureau data (2024)
The ZIP code 13864 encompasses a small community with a total population of 1,099. Renters make up 22.4% of the residents, indicating a primarily owner-occupied area. The median household income here is $60,389, placing it above the national average and suggesting a relatively affluent environment. The median home value stands at $187,886, which is indicative of a modestly priced housing market.
Moving into the economic dynamics of renting, the Fair Market Rent (FMR) for ZIP 13864 in fiscal year 2024 is set at $1,340. This figure represents the benchmark used by the Department of Housing and Urban Development (HUD) to determine rental assistance payments under the Section 8 program. In contrast, the market rent as reported by the Census Bureau's American Community Survey (ACS) is significantly lower at $731 per month. This discrepancy highlights a potential opportunity for landlords and small-portfolio investors who can offer quality rental properties at rates closer to the FMR while still being attractive to tenants.
The question then arises: Is ZIP 13864 better suited for a hands-off voucher operator or a hands-on value-add buyer? Given the higher FMR compared to the actual market rent, there is room for improvement and increased revenue for those willing to invest in property upgrades and management. A hands-on approach would likely yield better returns by aligning rents more closely with the FMR, thereby attracting Section 8 tenants and maximizing the benefits of the program. However, for those seeking a simpler, less involved investment strategy, the existing disparity could still provide a viable hands-off option, albeit with potentially lower returns.
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.