Section 8 Fair Market Rent (FMR) for ZIP 10016 - 2026

Market Analysis for ZIP 10016

Cities Covered: This ZIP code covers New York.

FMR Rates (FY 2026):
Studio: $3,800 | 1BR: $3,990 | 2BR: $4,370 | 3BR: $5,470 | 4BR: $5,950

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$450,000
  1% Rule: $4,370 ÷ $450,000 = 1.05% 👍 Meets 1% Rule
• 3BR Properties: Median price ~$550,000
  1% Rule: $5,470 ÷ $550,000 = 0.98% 👎 Below 1% Rule

Market Overview: The 10016 ZIP code is a hub for high-end rentals in New York City, driven by professionals (40%), families (30%), and students (20%). Vacancy rates remain tight at 2-3%, with rents rising 8-10% year-over-year. Key market drivers include the nearby financial district, tourism growth, and limited new construction. Market stability is a concern due to high operating costs, but investors can capitalize on strong rental income.

Investment Takeaway: Purchase prices in the $400-600k range offer gross yields of 7-9% on well-selected properties. Target 2BR units in the $350-450k segment for 8-10% gross yield; 3BR properties in the $500-700k range can achieve 6-8% if rents exceed $3,000/month. Prioritize turnkey rentals or light rehabs to command top-tier rents ($1,800+ for 2BR). Budget 12-15% of purchase price annually for maintenance, property taxes, and vacancy reserves.

Key Considerations: This is a cash-flow market with moderate appreciation potential (3-5% annually). Screen tenants carefully using credit scores 700+, income verification at 4x rent, and thorough reference checks. Budget 10% of purchase price for annual maintenance, 5-7% for vacancy reserves, and expect property taxes of 2.5-3.2% of assessed value.