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 | $920 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $157,447 | 0.84% | C |
| 3BR | $1,660 | $192,706 | 0.86% | C |
| 4BR | $1,920 | $217,626 | 0.88% | C |
| 5BR | $2,227 | $228,587 | 0.97% | C |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 13905, Binghamton, NY, are significant. First, tenant turnover poses a notable challenge, with the market rent at $1,378 compared to the Federal Market Rent (FMR) for FY 2024 at $1,190. This discrepancy suggests that tenants might struggle to cover the difference between their voucher amount and the actual rent, leading to frequent turnover. Additionally, vacancy exposure is a concern due to the lack of available data on days on market (DOM), which indicates uncertainty around how quickly units can be filled. The typical home value in the area is $181,392, while the median household income is only $53,362, creating an environment where deferred maintenance may become an issue as residents have limited funds to allocate towards property upkeep.
Despite these challenges, the high renter share of 52.9% provides a strong counterpoint. A higher percentage of renters generally translates into greater demand for housing vouchers, which can stabilize occupancy rates. Landlords can leverage this high renter density to ensure a steady stream of qualified applicants who are committed to maintaining their housing through the Section 8 program. Moreover, the local rental market's reliance on Section 8 vouchers can mitigate some of the financial risks associated with lower market rents.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.