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 | $2,280 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,390 | $578,877 | 0.41% | F |
| 2BR | $2,620 | $822,827 | 0.32% | F |
| 3BR | $3,280 | $1,643,997 | 0.2% | F |
U.S. Census Bureau data (2024)
ZIP code 10029, situated in East Harlem, is a dense, predominantly rental neighborhood characterized by classic pre-war walk-ups and a growing number of modern developments. The area offers strong connectivity, with the 4, 5, 6, and Metro-North lines providing rapid access to Midtown, making it a practical location for commuters. The neighborhood is anchored by the Mount Sinai Health System, a major institutional employer and economic driver that supports local housing demand. Community assets include the Thomas Jefferson Park and the recent East Harlem Mixed-Income Development, which signals ongoing municipal investment in the area.
Investors must navigate a significant divergence between subsidy caps and market realities here. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $2,510, yet the current market rent (Zillow ZORI) sits at $3,185, creating a gap of $675 per month. This spread indicates that standard Section 8 vouchers may not cover the full premium for market-rate units. Property values are steep, with a median home value of $750,805 and a median 2BR sale price of $810,561. However, sales move at a moderate pace, with a median of 86 days on market, suggesting that while properties are desirable, buyers are negotiating carefully on price.
The tenant base is overwhelmingly rental-centric, with a 92.8% renter share, yet the median household income is $38,695. This income level is substantially below the cost of market rents, driving robust demand for housing assistance. Families in the area rely on the neighborhood's transit infrastructure for access to economic opportunities. Local schools generally show mixed performance, but the proximity to major institutions and park space adds stability. For landlords, this dynamic creates a steady pool of applicants who need vouchers to afford housing in the area.
The verdict for 10029 is that Section 8 offers stability rather than maximum cash flow. The $675 gap between the 2BR FMR and market rent makes it difficult to achieve top-dollar yields solely through vouchers. However, the 92.8% renter share and low median income ensure a constant demand for subsidized units, reducing vacancy risk. The strongest angle here is long-term stability and the potential for appreciation driven by the Mount Sinai campus and improved transit, rather than immediate monthly premiums.
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.