Section 8 Fair Market Rent (FMR) for ZIP 10009 - 2027

Investment Score for ZIP 10009

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	$2,890
1 Bedroom	$3,040
2 Bedrooms	$3,310
3 Bedrooms	$4,190
4 Bedrooms	$4,590
5 Bedrooms	$5,324
6 Bedrooms	$5,963
7 Bedrooms	$6,440
8 Bedrooms	$6,762

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	$3,040	$795,264	0.38%	F
2BR	$3,310	$1,280,685	0.26%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 10009, New York, NY #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 10009 is set by HUD for 2026, with the following figures: - 0BR: $2700 - 1BR: $2840 - 2BR: $3110 - 3BR: $3890 - 4BR: $4230 However, the actual median rent for a 2BR unit on Zillow is $1,223,627, which is significantly higher than the FMR. The price-to-FMR ratio for a 2BR unit is 32.8x, indicating that the actual rental prices are far above the FMR. This suggests that voucher holders face significant constraints in finding affordable housing within the ZIP code. For instance, a 2BR unit priced at $3110 would only cover about 40.2% of the median household income, making it challenging for residents to afford even the most basic living expenses without additional financial support. #### Affordability & Renter Profile ZIP code 10009 has a high population density, with 60,209 residents. The median household income is $92,876, but with 89.6% of the population being renters, the affordability of housing is a critical issue. The occupancy rate stands at 93.3%, indicating a tight market where demand outstrips supply. Given the high rent-to-income ratio and the substantial disparity between FMR and actual rents, it is clear that the ZIP code is primarily occupied by individuals who can afford the high costs, such as professionals, young urbanites, and those with higher incomes. However, for low-income families relying on Section 8 vouchers, the market is extremely challenging due to the limited availability of units that fall within the FMR range. #### Investor Angle From an investor perspective, the ZIP code is not likely to be cash-flow positive at the FMR levels. With the actual median rent for a 2BR unit being $1,223,627, landlords would need to charge much higher rates than the FMR to achieve profitability. For example, a 2BR unit rented at $3110 per month would generate annual revenue of $37,320, which is insufficient to cover the mortgage payments, maintenance, and other operational costs associated with a property valued at over $1 million. Therefore, the investment grade for properties in this ZIP code that rely solely on FMR would be very low, as they would struggle to break even, let alone generate a profit. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high price-to-FMR ratio, investors should consider focusing on larger units like 3BR or 4BR apartments. These units have higher FMRs ($3890 and $4230 respectively), which might provide better cash flow potential if the property values are proportionally lower relative to the size. For instance, a 3BR unit rented at $3890 would generate annual revenue of $46,680, which could be more manageable in terms of covering operational costs. 2. **Consider Mixed-Income Developments**: Investors might want to explore opportunities in mixed-income developments where a portion of the units are subsidized through programs like Section 8, while others are rented at market rates. This approach can help balance the financial burden of renting below-market-rate units with the revenue generated from higher-priced units. Additionally, developers can leverage tax credits and other incentives designed to encourage affordable housing development. 3. **Engage with Local Housing Authorities**: To navigate the challenges of renting units at FMR levels, investors should engage closely with local housing authorities and community organizations. These entities often have programs and resources to assist landlords in managing the financial aspects of renting to low-income tenants. Building relationships with these groups can also provide insights into future policy changes and funding opportunities that could improve the viability of Section 8-focused investments. #### Bottom Line For investors focused on Section 8 vouchers, the ZIP code 10009 presents significant challenges due to the high cost of living and the substantial gap between FMR and actual rents. The recommendation for this ZIP code is to **skip** investing in properties that are expected to rent exclusively at FMR levels. Instead, investors should look for alternative strategies such as mixed-income developments or larger units that have higher FMRs. The current market dynamics make it difficult to achieve positive cash flow purely based on Section 8 vouchers, and the investment risk is high given the limited number of units that fall within the FMR range.

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.