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 | $2,470 |
| 1 Bedroom | $2,600 |
| 2 Bedrooms | $2,830 |
| 3 Bedrooms | $3,580 |
| 4 Bedrooms | $3,930 |
| 5 Bedrooms | $4,559 |
| 6 Bedrooms | $5,106 |
| 7 Bedrooms | $5,514 |
| 8 Bedrooms | $5,790 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,600 | $624,278 | 0.42% | F |
| 2BR | $2,830 | $830,975 | 0.34% | F |
| 3BR | $3,580 | $1,311,579 | 0.27% | F |
U.S. Census Bureau data (2024)
New York’s 10027 ZIP code, primarily comprising West Harlem and Manhattanville, is a densely populated neighborhood characterized by historic brownstones and a growing number of modern luxury developments. The area is anchored by the presence of Columbia University, specifically the expanding Manhattanville campus, which serves as a major institutional employer and driver of local economic activity. This mix of academic influence and residential stock creates a vibrant, urban environment with strong access to public transit via the 1, A, B, C, and D subway lines.
From a financial perspective, the data reveals a challenging spread for voucher program participation. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is listed at $2,700 for FY2026, yet current market rents (Zillow ZORI) sit significantly higher at $3,285. This creates a negative gap of $585 per month, meaning standard payment standards fall short of prevailing market rates. With median home values at $823,384 and properties lingering on the market for a median of 87 days, investors face high entry costs coupled with slower liquidity.
The tenant profile here is overwhelmingly renter-occupied at 82.6%, with a median household income of $59,587. Given that the income limit for a 2-person household to qualify for Section 8 in this area is approximately $51,550, a vast portion of the local population is likely income-eligible for housing assistance. While families are drawn to the neighborhood for its access to major green spaces like Morningside Park and reputable local schools, the rental rates are increasingly squeezed by new inventory.
The Section 8 verdict for 10027 is neutral to negative regarding immediate cash flow, as the $585 rent gap requires landlords to either absorb a loss or seek "exception rents" to bridge the divide. However, the stability angle remains valid; the high renter share and proximity to major universities ensure consistent demand. Investors should only enter this market if they can secure property prices below the $823,384 median or if they possess units qualifying for higher utility allowances to offset the FMR deficit.
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.