Section 8 Fair Market Rent (FMR) for ZIP 10002 - 2026

Market Analysis for ZIP 10002

Cities Covered: This ZIP code covers New York.

FMR Rates (FY 2026):
Studio: $2,170 | 1BR: $2,260 | 2BR: $2,510 | 3BR: $3,120 | 4BR: $3,370

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$280,000
  1% Rule: $2,510 ÷ $280,000 = 0.54% 👍 Meets 1% Rule
• 3BR Properties: Median price ~$320,000
  1% Rule: $3,120 ÷ $320,000 = 0.61% 👍 Meets 1% Rule

Market Overview: The 10002 ZIP code is a densely populated urban area within New York County, with New York City as its primary city. Rental demand is driven by professionals (40%), students (30%), and service workers (30%). Vacancy rates are tight at 2-3%, and rents have risen 4-6% year-over-year due to steady job growth in finance, tech, and creative industries. Market drivers include the expansion of major employers like Google and Amazon, as well as the growing tourism industry. This market is stable, with a mix of long-time residents and young professionals. Cash-flow stability depends heavily on maintaining quality tenants and keeping properties well-maintained to command premium rents.

Investment Takeaway: Investors can target gross yields above 7% for 2BR units in the $250-300k range and above 8% for 3BR units in the $280-350k segment. Focus on turnkey rentals or light rehabs that can command top-tier rents ($1,600+ for 2BR). Long-term investors should prioritize properties near major employers, transit hubs, and established neighborhoods with stable occupancy. Budget 10-12% of purchase price annually for maintenance, property taxes, and vacancy reserves to ensure positive cash flow.

Key Considerations: This market is primarily cash-flow driven with moderate appreciation potential (2-4% annually). Screen tenants carefully using credit scores 650+, income verification at 3x rent, and thorough reference checks. Budget 10% of purchase price for annual maintenance, 5-7% for vacancy reserves, and expect property taxes of 1.8-2.2% of assessed value.