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 | $3,530 |
| 1 Bedroom | $3,710 |
| 2 Bedrooms | $4,040 |
| 3 Bedrooms | $5,110 |
| 4 Bedrooms | $5,600 |
| 5 Bedrooms | $6,496 |
| 6 Bedrooms | $7,276 |
| 7 Bedrooms | $7,858 |
| 8 Bedrooms | $8,251 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,710 | $950,478 | 0.39% | F |
| 2BR | $4,040 | $2,032,962 | 0.2% | F |
| 3BR | $5,110 | $3,729,398 | 0.14% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 10010, New York, NY, is characterized by a median home value of $1,238,634. This figure suggests a robust market where high-value properties dominate. The fact that only 0.1% of listings have been reduced indicates a strong seller's market with little pressure to lower asking prices. Landlords and small-portfolio investors should note that the median days on market (DOM) being listed as N/A signals either a very quick turnover of properties or an exceptionally tight market where homes are selling rapidly upon listing.
On the rental side, the Federal Market Rent (FMR) for ZIP 10010 in fiscal year 2024 is set at $3530, while the actual market rent, measured by Zillow's Observed Rental Index (ZORI), stands at $5,080. This gap between the FMR and ZORI highlights the significant disparity between government-assisted rents and the market rate, which could be advantageous for landlords who manage Section 8 properties. However, it also underscores the financial challenges faced by tenants relying on Section 8 vouchers in this area.
The setup implied by these figures points to a market where pricing power remains firmly with sellers and landlords. Home values are unlikely to drop significantly given the minimal reductions in listings and the rapid sales pace. For long-term investors, the appreciation thesis is based on the sustained demand for housing in New York City, particularly in high-value ZIP codes. However, the potential for substantial appreciation may be limited by the already inflated property values and the economic factors affecting the broader New York market.
Investors should focus on maintaining competitive rental rates to attract tenants and ensure steady cash flow. Given the FMR-ZORI gap, there is a clear incentive to align rental rates with the FMR to tap into the Section 8 tenant pool. This strategy can provide stability in a market where fluctuations in the broader economy might otherwise impact rental income.
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.