Section 8 Fair Market Rent (FMR) for ZIP 10016 - 2027

Investment Score for ZIP 10016

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: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$4,100	$830,969	0.49%	F
2BR	$4,460	$1,451,787	0.31%	F
3BR	$5,640	$2,217,410	0.25%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 10016 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 10016 is significantly lower than the actual rents charged in the area. For instance, the FMR for a two-bedroom apartment is $4,370, while the Zillow median price for a similar unit is $1,447,764. This means that the price-to-FMR ratio is approximately 27.6 times higher, indicating that the actual rent prices are far beyond what the typical Section 8 voucher can cover. The constraints for voucher holders are severe, as they would struggle to find housing that fits within their budget. Given that the median household income is $140,381, the FMR for a two-bedroom unit represents only 37.4% of the median income, which is still a substantial amount for low-income households. #### Affordability & Renter Profile ZIP code 10016 has a high occupancy rate of 81.2%, suggesting that it is a tight market with limited availability. The population is relatively small at 52,971, but the renter percentage is quite high at 74.9%. This indicates that most residents are renters rather than homeowners, which aligns with the typical profile of a densely populated urban area. However, given the high rent prices relative to the FMR, it is likely that many renters are middle to upper-middle class individuals who can afford the premium rates. Low-income households would find it challenging to secure affordable housing within the ZIP code, especially when relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 10016 is not cash-flow positive at the FMR levels. The FMR for a two-bedroom unit is $4,370, which is much lower than the actual market rent. Given the high median home value and the fact that the actual rent is about 27.6 times the FMR, it is clear that the rental market is heavily skewed towards luxury units. Investors looking to capitalize on Section 8 vouchers would face significant challenges due to the mismatch between FMR and actual rents. The investment grade for this ZIP code is low for Section 8-focused investors because the demand for affordable housing is not met by the supply of properties available at FMR levels. #### Specific Actionable Insights 1. **Focus on Luxury Rentals**: Given the high price-to-FMR ratio, investors should focus on acquiring and managing luxury rental properties. The median home value of $1,447,764 suggests that there is a strong demand for upscale rentals, and these units can command much higher rents than the FMR. For example, a two-bedroom unit could be rented out for $120,000 annually ($10,000 per month), which is well above the FMR of $4,370. 2. **Consider Short-Term Rentals**: With a high occupancy rate and a large number of renters, short-term rentals like Airbnb could be a lucrative option. These rentals can often command even higher rates than long-term leases, especially in a popular tourist destination like New York City. Investors could consider converting some units into short-term rentals to maximize returns. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** ZIP code 10016. The gap between FMR and actual rents is too wide, making it difficult to find properties that fit within the voucher limits. Additionally, the high median home value and occupancy rate indicate a market that is already saturated with expensive units, leaving little room for affordable housing options. Instead, investors should look for areas where the price-to-FMR ratio is closer to 1, ensuring better alignment with the needs of low-income households.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.