Location: Elmira, 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 | $1,110 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,920 | $213,457 | 0.9% | C |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 14859 might raise several valid concerns regarding the feasibility of investing in properties through the Section 8 program. These concerns can be addressed with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1280 cover the mortgage on a $176,946 home?
The answer is not straightforward without knowing the interest rate and loan term. However, using a conservative estimate, let's assume a 30-year fixed-rate mortgage at an average interest rate of 5%. The monthly mortgage payment on a $176,946 home would be approximately $970. Given that the FMR is $1280, it would indeed cover the mortgage payment with some surplus. This surplus could help offset other costs such as property taxes, insurance, and maintenance.
Objection 2: Is there enough renter demand at 7.1%?
The rental vacancy rate of 7.1% suggests that there is a moderate level of competition among landlords. A lower vacancy rate indicates higher demand, but even at this rate, there are still renters looking for affordable housing options. It's important to note that ZIP 14859 likely has a mix of homeowners and renters, with the Section 8 program catering specifically to those who qualify for housing assistance. Therefore, the 7.1% vacancy rate does not necessarily indicate a lack of demand for subsidized housing.
Objection 3: Will vouchers keep pace with $1,125 market rents?
The FMR of $1280 is designed to reflect the cost of typical rental units in the area. If the market rent is $1,125, which is below the FMR, then it's reasonable to expect that voucher amounts will generally cover this rent. However, it's crucial to understand that voucher amounts are determined based on household income and other factors, meaning not all tenants will receive the maximum amount. Landlords should prepare for potential shortfalls if the tenant's income is significantly below the median, requiring them to accept a lower rent or seek additional subsidies.
In conclusion, while the data provides insights into the financial viability of Section 8 investments in ZIP 14859, it is essential to consider individual circumstances, including the specific terms of any mortgage and the unique characteristics of the rental market within the zip code. The FMR and market rent data suggest that the program can support mortgage payments and compete with market rates, though careful planning is necessary to ensure profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.