Section 8 Fair Market Rent (FMR) for ZIP 14751 - 2027

FY 2027 Fair Market Rent Rates

The analysis for ZIP code 14751 in Unknown, NY, regarding the Section 8 cap rate, requires some assumptions due to limited data availability. The Fair Market Rent (FMR) for a two-bedroom apartment in the area, as of FY 2026, is set at $1,010 annually. This figure provides a baseline for rental income that landlords can expect from tenants participating in the Section 8 program.

Given the median home value is not available, we cannot directly calculate the cap rate. However, we can still provide insights into the potential gross yield for landlords. If we consider the FMR as the rental income, the gross yield would be calculated based on the annual rent divided by the property's value. Since the median home value is unknown, let's assume a hypothetical scenario where the median home value is around $200,000. In this case, the gross yield would be approximately 0.6%, which is derived from $1,010 (annualized FMR) divided by $200,000 (hypothetical median home value).

However, it's important to note that the actual market rent is also not provided, making it difficult to compare the gross yield between the Section 8 program and market rates. Typically, market rents tend to be higher than FMRs, which could suggest a potentially higher gross yield for market-rate rentals. Without specific figures for market rent, we cannot make a direct comparison; however, it's reasonable to infer that market-rate yields would generally exceed the 0.6% implied by the Section 8 FMR.

The lack of data on renter density and days on market (DOM) further complicates the analysis. These metrics would provide valuable context on how competitive the rental market is and how quickly properties are rented out. With these figures unavailable, it's challenging to determine which scenario is more realistic. However, if we were to speculate based on typical trends, areas with lower renter density and longer DOM might indicate a slower rental market, making Section 8 participation a more stable option despite the lower gross yield.

In summary, while the exact cap rate cannot be determined due to missing data points, the gross yield from the Section 8 program in ZIP 14751 is estimated at 0.6% under our hypothetical assumptions. Market-rate rentals likely offer a higher gross yield, but the stability and predictability of Section 8 payments should also be considered.

Data Sources: FMR data from HUD (2027).

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.