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 | $3,210 |
| 1 Bedroom | $3,380 |
| 2 Bedrooms | $3,680 |
| 3 Bedrooms | $4,660 |
| 4 Bedrooms | $5,100 |
| 5 Bedrooms | $5,916 |
| 6 Bedrooms | $6,626 |
| 7 Bedrooms | $7,156 |
| 8 Bedrooms | $7,514 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,380 | $1,344,156 | 0.25% | F |
| 2BR | $3,680 | $2,851,815 | 0.13% | F |
| 3BR | $4,660 | $4,774,365 | 0.1% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 10007 under the Section 8 program are significant. Tenant turnover is a critical issue, with market rents at $7,352 compared to the Federal Market Rent (FMR) of $3,450 for FY 2024. This disparity indicates that landlords may struggle to maintain occupancy levels, especially since the average days on market (DOM) is not available, suggesting a highly competitive rental environment where vacancies can persist longer than expected. Additionally, the high typical home value of $3,112,678 combined with a median income of $250,001 exposes landlords to the risk of deferred maintenance. Tenants in ZIP 10007 may find it challenging to afford additional costs beyond their rent subsidy, leading to potential neglect of property upkeep.
However, these risks must be weighed against the strong demand for rental properties in the area. With a renter share of 69.6%, there is a robust market for Section 8 vouchers. High renter density often translates into higher demand for affordable housing options, which can stabilize occupancy rates over time. The combination of high property values and a significant portion of renters suggests that while initial challenges may exist, the long-term outlook for maintaining a steady stream of tenants is favorable.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.