Section 8 Fair Market Rent (FMR) for ZIP 10011 - 2027

Investment Score for ZIP 10011

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	$1,112,686	0.37%	F
2BR	$4,460	$2,321,449	0.19%	F
3BR	$5,640	$4,238,841	0.13%	F
4BR	$6,190	$7,100,205	0.09%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 10011, New York, NY #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 10011 in New York, NY, is set by HUD for 2026 as follows: - 0BR: $3800 - 1BR: $3990 - 2BR: $4370 - 3BR: $5470 - 4BR: $5950 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent. However, when comparing these FMRs to actual market rents, it becomes evident that there is a significant gap. For instance, the Zillow median price for a 2BR unit in 10011 is $2,244,028, which translates into a monthly mortgage payment of approximately $11,220 (assuming a 30-year fixed-rate mortgage at 4%). This is nearly three times the FMR for a 2BR unit, indicating that the actual rents far exceed the FMR. The constraint for voucher holders is clear: they will find it extremely difficult to secure housing in this ZIP code using only their vouchers. The FMR for a 2BR unit is $4370, which is only 35.9% of the median household income ($145,987), suggesting that even if a landlord were willing to accept the voucher, the rent would still be quite high relative to income levels. #### Affordability & Renter Profile ZIP code 10011 has a population of 48,277, with 64.1% of residents being renters. This indicates a strong demand for rental properties in the area. However, the occupancy rate stands at 79.8%, which suggests that while there is a high demand, there might also be a slight oversupply of units, leading to some vacancies. Given the median household income of $145,987, most residents are likely to be upper-middle-class individuals or families who can afford the high rents. The Zillow median price for a 2BR unit being $2,244,028 further supports this conclusion. The price-to-FMR ratio for a 2BR unit is 42.8x, meaning that the market rent is significantly higher than what is covered by the Section 8 voucher program. This makes it a challenging environment for low-income renters who rely on government assistance. #### Investor Angle From an investor's perspective, the ZIP code 10011 presents a mixed picture. While the demand for rental properties is high, the actual rents commanded in the market are substantially above the FMR. For example, a 2BR unit with a Zillow median price of $2,244,028 would have a monthly mortgage payment of around $11,220. Even if we assume a conservative vacancy rate and maintenance costs, the total monthly expenses would still be well above the FMR of $4370. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the potential rental income versus the mortgage payment. If a landlord were to rent out a 2BR unit at the FMR of $4370, the property would not generate sufficient income to cover the mortgage payment, let alone other operating costs such as taxes, insurance, and maintenance. Therefore, the ZIP code is not cash-flow positive at FMR for a typical 2BR unit. In terms of investment grade, ZIP code 10011 would be considered a high-risk, low-reward area for Section 8-focused investors. The high market rents and the low FMRs mean that landlords would be unlikely to find the program financially viable unless they are willing to accept a significant reduction in rental income. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high market rents, investors should focus on smaller units (0BR or 1BR) where the FMR is lower. For instance, a 0BR unit with an FMR of $3800 might be more manageable in terms of cash flow compared to larger units. This strategy could help mitigate the financial strain of accepting Section 8 vouchers. 2. **Consider Alternative Financing Options**: Since the FMR is so much lower than the market rent, traditional financing might not be feasible. Investors could explore alternative financing options like hard money loans or private lenders who might offer more flexible terms. Additionally, they could look into properties that are already subsidized or have existing rental agreements that align better with the FMR. 3. **Diversify Tenant Base**: To ensure a steady cash flow, investors should consider diversifying their tenant base beyond just Section 8 voucher holders. This could include offering a mix of market-rate and subsidized units, or exploring other government programs that provide higher subsidies. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 10011 is to **skip** this market. The high market rents and the low FMRs make it financially unviable to operate properties solely on Section 8 vouchers. The tight market conditions and high occupancy rates suggest that landlords would struggle to fill units with voucher holders, given the limited financial incentive. Investors looking to enter this market should either seek alternative financing strategies or consider diversifying their tenant base to include a mix of market-rate and subsidized tenants.

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.