Section 8 Fair Market Rent (FMR) for ZIP 10003 - 2027

Investment Score for ZIP 10003

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$3,890
1 Bedroom	$4,100
2 Bedrooms	$4,460
3 Bedrooms	$5,640
4 Bedrooms	$6,190
5 Bedrooms	$7,180
6 Bedrooms	$8,042
7 Bedrooms	$8,685
8 Bedrooms	$9,119

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$4,100	$1,071,848	0.38%	F
2BR	$4,460	$2,063,131	0.22%	F
3BR	$5,640	$3,711,194	0.15%	F
4BR	$6,190	$5,960,300	0.1%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 10003, New York, NY #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 10003 in New York, NY, as of 2026, are as follows: - 0BR: $3800 - 1BR: $3990 - 2BR: $4370 - 3BR: $5470 - 4BR: $5950 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, comparing these figures to the actual rental market in 10003 reveals significant discrepancies. The Zillow median price for a 2BR unit is $1,969,712, which translates to a monthly mortgage payment of approximately $8,207 based on a 4.5% interest rate and a 30-year fixed mortgage. This is nearly double the FMR for a 2BR unit, indicating that the actual rents in the area far exceed what is covered by Section 8 vouchers. Given the high cost of living in 10003, voucher holders face substantial constraints. For instance, a 2BR unit at the Zillow median price would require a monthly mortgage payment of $8,207, while the FMR is only $4,370. This means that landlords who accept Section 8 vouchers would have to significantly reduce their rental rates to attract tenants, making it less attractive financially. #### Affordability & Renter Profile ZIP code 10003 has a population of 53,560, with 62.9% of residents being renters. The occupancy rate stands at 80.6%, suggesting that the market is relatively tight, with a strong demand for rental properties. The median household income in the area is $154,262, which is quite high, but only 34.0% of this income is required to cover the FMR for a 2BR unit. This implies that the typical resident in 10003 is likely to be well above the median income level, further highlighting the disparity between the local rental market and the affordability of Section 8 vouchers. The high median income and the tight rental market indicate that the area is predominantly occupied by individuals and families who can afford higher rents. Therefore, the demand for affordable housing supported by Section 8 vouchers is likely to be lower compared to other areas with similar constraints. #### Investor Angle From an investor perspective, the cash flow potential in ZIP code 10003 is highly dependent on the ability to secure tenants willing to pay the FMR. Given the high cost of living and the limited financial support provided by Section 8 vouchers, it is unlikely that many landlords will find it profitable to accept these vouchers at the FMR levels. To illustrate, let’s consider a 2BR unit. The FMR is $4,370, while the actual median rent is much higher. If a landlord were to accept a Section 8 voucher, they would need to set their rent at $4,370 to comply with HUD regulations. This would result in a significant reduction in potential rental income, especially considering the high property values and associated costs. Furthermore, the price-to-FMR ratio of 37.6x indicates that the median home value is extremely high relative to the FMR. This suggests that the market is overpriced for the average Section 8 tenant, making it difficult to achieve positive cash flow even at the FMR. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high FMR-to-rent ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units have lower FMRs ($3800 and $3990 respectively), which might be closer to the actual rental market rates. This could help mitigate the financial impact of accepting Section 8 vouchers. 2. **Consider Mixed-Income Developments**: Investors might want to explore mixed-income developments where a portion of the units are reserved for low-income tenants, including those with Section 8 vouchers. This approach can balance the financial risks associated with accepting vouchers by ensuring that other units are rented at market rates. 3. **Evaluate Property Values**: Before investing, carefully evaluate the property values and ensure that the purchase price aligns with the expected rental income at FMR levels. Given the high price-to-FMR ratio, it is crucial to avoid overpaying for properties that may not generate sufficient cash flow when rented to Section 8 tenants. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 10003 is to **skip**. The high cost of living, tight rental market, and significant disparity between FMR and actual rents make it challenging to achieve positive cash flow. Additionally, the high price-to-FMR ratio suggests that the market is overpriced for the average Section 8 tenant, reducing the likelihood of finding suitable investments in this area.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.