Location: Ithaca, NY | Metro: Ithaca, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,370 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1760 for ZIP 14853 (Ithaca, NY) can cover the mortgage on a typical home. Unfortunately, the data does not provide a median home value for this ZIP code. Without this figure, it's impossible to calculate an exact mortgage payment. However, given that the national median home value is around $332,700, one could infer that the mortgage on a home in ZIP 14853 would likely be higher than the FMR.
The second objection concerns the level of renter demand at the specified FMR. The data indicates that the median home value in Ithaca exceeds $250,000, suggesting a robust housing market. Yet, the rental vacancy rate for ZIP 14853 is not explicitly stated in the available sources. Typically, a lower vacancy rate signifies stronger demand. While we don't have precise data, the high median home value implies that there is significant interest in housing, both for purchase and rent.
The third concern is whether Housing Choice Vouchers will keep pace with the local market rents. Again, the data does not provide specific information on voucher amounts or trends in ZIP 14853. However, the national trend shows that voucher amounts generally lag behind market rents, especially in areas with high housing costs. Given Ithaca's above-average median home value, it's reasonable to expect that voucher amounts may struggle to meet the FMR of $1760.
To summarize, while the data is incomplete, it suggests that covering a mortgage with the FMR of $1760 is unlikely, there is likely strong renter demand, and vouchers may not keep up with market rents. These points highlight the need for careful consideration before investing in ZIP 14853.
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.