Section 8 Fair Market Rent (FMR) for ZIP 10006 - 2027

Investment Score for ZIP 10006

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

Investment Analysis by Bedroom Size

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering investing in ZIP 10006 for Section 8 purposes must evaluate several key factors to make an informed decision. The first step involves understanding if the Fair Market Rent (FMR) can cover the debt service on a property valued at $1,062,063.

Step 1: Does FMR of $4,130 (for ZIP 10006 in FY 2024) clear debt service on a $1,062,063 property?

• Yes: If the FMR of $4,130 is sufficient to cover the mortgage payments and other associated costs, then the property can be considered financially viable for Section 8 investment.
• No: If the FMR of $4,130 does not cover the debt service, the property is not suitable for Section 8 tenants, as the rental income will not meet financial obligations.

Step 2: Is the market rent of $4,423 (ZORI) above, at, or below the FMR?

• Above: If the ZORI is higher than the FMR, it suggests that the market rent exceeds what Section 8 tenants can pay, making it less attractive unless the landlord plans to mix Section 8 units with market-rate rentals.
• At: If the ZORI aligns closely with the FMR, the property can be rented out at the maximum allowable rate under Section 8 without significant financial loss.
• Below: If the ZORI is below the FMR, it indicates that the market rent is lower than the FMR, which might suggest an opportunity to offer competitive rates while still receiving the higher FMR payment from the government.

Step 3: Are 84.3% of residents renters and the days on market (DOM) sufficient to ensure enough demand?

• Yes: With 84.3% of residents being renters, there is a strong indication of high demand. However, the N/A for DOM means there is no data on how quickly properties are rented, which could be a concern. Despite this, the high percentage of renters supports the viability of renting to Section 8 tenants.
• No: If the percentage of renters were lower, or if the DOM was excessively high, it would indicate low demand, making it difficult to maintain occupancy levels necessary for a stable income stream.
• It Depends: Without DOM data, the decision hinges on other factors such as local economic conditions, job availability, and the overall housing market dynamics in ZIP 10006.

In summary, if the FMR clears the debt service and the market rent is at or above the FMR, and the high percentage of renters indicates sufficient demand, then the answer is yes, a landlord should consider buying in ZIP 10006 for Section 8. However, the lack of DOM data introduces uncertainty, and landlords should proceed with caution, investigating further into local market conditions before making a final decision.

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.