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 | $2,860 |
| 1 Bedroom | $3,010 |
| 2 Bedrooms | $3,280 |
| 3 Bedrooms | $4,150 |
| 4 Bedrooms | $4,550 |
| 5 Bedrooms | $5,278 |
| 6 Bedrooms | $5,911 |
| 7 Bedrooms | $6,384 |
| 8 Bedrooms | $6,703 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,010 | $641,658 | 0.47% | F |
| 2BR | $3,280 | $950,240 | 0.35% | F |
| 3BR | $4,150 | $1,322,188 | 0.31% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 10026, located in New York, NY, specifically in New York County, operate under the federal government's Fair Market Rent (SAFMR) guidelines. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $2,610. This figure represents the maximum amount the government will reimburse landlords for rent, ensuring it is reasonable for low-income tenants while also being fair to property owners.
In contrast, the local market rent for a similar unit in ZIP 10026, as indicated by the Zillow Observed Rent Index (ZORI), stands at $3,366. This higher figure reflects the competitive rental market in the area, where landlords often seek to maximize their income based on demand.
A landlord participating in the Section 8 program should understand that the reimbursement they receive is calculated based on the SAFMR minus the tenant's portion of the rent. Typically, the tenant is required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,740 (the median SAFMR divided by 1.5), the tenant would contribute $522 towards the rent.
The government then covers the remaining portion up to the SAFMR limit. In this case, that would be $2,610 minus the $522 paid by the tenant, leaving a reimbursement of $2,088. Additionally, landlords receive utility allowances which vary but are typically around $200-$300 per month, depending on the specific utilities included in the lease agreement. This brings the total reimbursement closer to $2,300-$2,500 per month.
To summarize, a landlord in ZIP 10026 can expect a reimbursement of approximately $2,300-$2,500 per month for a two-bedroom apartment under the Section 8 program. This leaves a significant gap between the local market rent and the Section 8 reimbursement, amounting to a shortfall of about $866-$1,066 per month. This gap is a critical consideration for landlords deciding whether to participate in the program, especially given the high local market rents.
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.