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 | $3,890 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $4,100 | $1,306,505 | 0.31% | F |
| 2BR | $4,460 | $3,116,588 | 0.14% | F |
| 3BR | $5,640 | $5,485,632 | 0.1% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 10012 in New York City, which includes parts of Manhattan, stands at $4,130 for the fiscal year 2024. This figure is notably lower than the market rent of $4,962, as indicated by the Zillow Observed Rental Index (ZORI). For Section 8 investors, this means that tenants with vouchers will only cashflow in premium units, as the difference between the FMR and the actual market rent is substantial.
The median home value in ZIP 10012 is $2,714,052. To understand the rent-to-price ratio, we can calculate it using the market rent. The ratio is approximately 18.2%, which is derived from dividing the market rent ($4,962) by the median home value ($2,714,052) and multiplying by 12 months. This high rent-to-price ratio suggests that rental income represents a significant portion of the property's value, making rentals particularly attractive in this area.
In terms of the days on market (DOM), the data is not available for this ZIP code, and the percentage of properties that have been listed with a price cut is also not applicable. However, these metrics typically influence the decision between buying and renting. Given the high median home values and the premium nature of the market, the focus for investors should be on cashflow rather than price-cutting strategies.
The strongest investor angle in ZIP 10012 is appreciation. Despite the challenges in achieving positive cashflow with Section 8 tenants due to the gap between FMR and market rents, the potential for property value growth in this highly sought-after area provides a compelling reason for investment. Long-term gains from appreciation can outweigh short-term cashflow deficits, especially considering the robust demand for housing in Manhattan.
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.