Location: Schuyler County, NY | Metro: Schuyler County, NY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
The analysis of the Section 8 cap rate picture for ZIP code 14876 in Unknown, NY, requires us to consider the Federal Market Rent (FMR) for a two-bedroom apartment and the median home value, although some key data points are currently unavailable.
Based on the available data, the annualized FMR for a two-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $1,150 per month. This translates into an annual rental income of $13,800 if we assume a consistent occupancy rate throughout the year. However, without the median home value for ZIP 14876, it's impossible to calculate the exact cap rate. The cap rate is typically calculated as the net operating income (NOI) divided by the property value. For the purposes of this analysis, we'll focus on the gross yield, which is the annual rental income divided by the property value.
In the scenario where the median home value is known, the gross yield would be calculated by dividing the annual rental income of $13,800 by the median home value. For example, if the median home value were $200,000, the gross yield would be 6.9%. This is a hypothetical calculation since the actual median home value is not provided.
Without the median home value, we cannot provide a concrete gross yield figure. However, we can still discuss the implications of the data that is available. The lack of a specified market rent indicates that there might be limited competition from private landlords, suggesting that Section 8 rents could be a significant portion of the rental market in this area. Additionally, the unknown renter density and days on market (DOM) imply uncertainty about the overall demand for rentals in ZIP 14876.
To determine which scenario is more realistic, investors must consider the local rental market dynamics. If the renter density is high and the DOM is low, it suggests strong demand for rental properties, making the Section 8 rent a viable option. Conversely, if the market conditions are weak, landlords might struggle to fill vacancies solely relying on Section 8 tenants, affecting the overall yield.
In conclusion, while the exact cap rate and gross yield cannot be determined due to missing data, the annualized FMR provides a baseline for potential rental income. Investors should use this information alongside local market conditions to make informed decisions about the viability of Section 8 tenancy in ZIP 14876.
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.