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 | $862,123 | 0.48% | F |
| 2BR | $4,460 | $1,650,639 | 0.27% | F |
| 3BR | $5,640 | $2,834,964 | 0.2% | F |
| 4BR | $6,190 | $4,705,018 | 0.13% | F |
| 5BR | $7,180 | $8,376,719 | 0.09% | F |
U.S. Census Bureau data (2024)
ZIP code 10024 covers the Upper West Side, a dense, high-demand Manhattan neighborhood defined by pre-war architecture and proximity to Central Park. This area is culturally anchored by major institutions such as Columbia University, which employs a significant portion of the local workforce and drives consistent demand for housing near its expanding campuses. The neighborhood offers a blend of residential quietude and commercial vibrancy, with tree-lined streets and a mix of high-end co-ops and rental buildings.
From a financial perspective, the HUD Fair Market Rent (FMR) for a 2-bedroom unit is set at $4,370, while current market rents (Zillow ZORI) sit at $4,064, creating a rare scenario where the HUD standard actually exceeds market performance by $306. Investors face a steep entry barrier, with a median home value of $1,564,701 and a median 2BR sale price of $1,600,632. Properties move relatively slowly, with a median days on market of 72 days, indicating a high-price, low-velocity environment that rewards patience over quick flips.
The tenant pool is robust, supported by a 62.9% renter share and a median household income of $181,560, suggesting a population that can afford rents well above the voucher floor. While the income level is high, the local rental market remains competitive due to the neighborhood’s top-tier schools, including P.S. 166 and the Beacon School, and excellent transit access via the 1, 2, and 3 subway lines. These amenities ensure that even voucher holders seeking placement in this area will find the location desirable, maintaining occupancy stability.
The Section 8 verdict for 10024 leans heavily toward stability and asset appreciation rather than immediate cashflow. With the 2BR FMR ($4,370) outpacing market rent ($4,064), investors can secure a government-backed rate that is higher than the open market, providing a safety net against local softening. However, the extreme acquisition costs require a long-term hold strategy to realize equity growth. The strongest angle here is using the premium HUD payment to service high debt on a prime Manhattan asset, banking on the enduring prestige of the Upper West Side.
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.