Location: New York, NY | Metro: New York, NY HUD Metro FMR Area
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 | $2,280 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,390 | $710,542 | 0.34% | F |
| 2BR | $2,620 | $1,009,094 | 0.26% | F |
| 3BR | $3,280 | $1,545,639 | 0.21% | F |
U.S. Census Bureau data (2024)
ZIP code 10002 covers the vibrant Lower East Side of Manhattan, a neighborhood defined by its tenacity and historic architecture. The area offers an energetic mix of tenement buildings, high-rise developments, and an expanding retail corridor. Tenants are drawn here by the subway accessibility and the proximity to major medical hubs. Notably, NYU Langone Health serves as a dominant regional employer, providing a stable base of potential renters who value short commutes and the neighborhood’s walkable character.
From a financial standpoint, the math presents a distinct challenge for voucher holders. The FY2026 Fair Market Rent for a 2-bedroom unit is $2,510, which stands in stark contrast to the current market rent of $4,518. This reveals a $2,008 monthly gap between the HUD subsidy and prevailing market rates. With median home values reaching $952,147 and a median 2BR sale price of $1,001,140, acquisition costs are significant. Properties sit on the market for a median of 88 days, suggesting that while inventory moves, it is not flying off the shelves at these price points.
The demographic profile heavily favors renting, with 81.3% of households renting and a median income of $48,386. Given the high cost of living, a significant portion of local workers likely qualify for rental assistance, indicating strong underlying demand for subsidized units. The neighborhood remains attractive due to its robust transit links and continuing gentrification, maintaining a steady pool of applicants looking for housing relief in a high-barrier market.
The Section 8 verdict for 10002 is cautious. The investment case rests on long-term appreciation and stability rather than immediate cash flow. While the $952,147 median value suggests asset growth, the massive $2,008 rent gap makes standard cash-flow difficult without substantial down payments. Investors should target this area for portfolio stability and equity gains, accepting that voucher caps will likely require supplemental income to meet current market expectations.
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.