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 | $809,821 | 0.51% | F |
| 2BR | $4,460 | $1,273,068 | 0.35% | F |
U.S. Census Bureau data (2024)
The ZIP code 10038 is located in Manhattan, New York, NY, representing a densely populated urban area with a significant percentage of residents being renters. With a total population of 22,235, it stands out due to its high rental rate, where 68.4% of the residents are tenants. The median household income in this area is notably high at $105,419, reflecting a neighborhood that attracts professionals and upper-middle-class individuals. Given the nature of the area, there is no median home value listed, indicating that homeownership is less prevalent compared to renting.
From an investment perspective, the disparity between the Fair Market Rent (FMR) and the market rent (ZORI) is crucial. For fiscal year 2024, the FMR for ZIP 10038 is set at $4,130, while the ZORI, which represents the actual market rent, is significantly higher at $4,829. This gap suggests that landlords participating in the Section 8 program could potentially face a shortfall if they rely solely on the voucher payments to cover their costs. However, the higher market rent also indicates opportunities for landlords willing to accept vouchers but also seek additional market-based tenants to balance their portfolio.
In terms of fitting an investment strategy, ZIP 10038 is better suited for hands-on value-add buyers rather than hands-off operators. The high cost of living and the premium placed on housing in this part of Manhattan mean that simply accepting vouchers without actively managing properties will likely result in financial strain. Value-add buyers can leverage the strong local economy and high demand for rental properties by renovating units, increasing energy efficiency, or offering amenities that appeal to both voucher recipients and market-rate tenants. This approach can help bridge the gap between FMR and market rents, making the investment viable and profitable.
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.