Section 8 Fair Market Rent (FMR) for ZIP 10041 - 2026

Market Analysis for ZIP 10041

Cities Covered: This ZIP code covers New York.

FMR Rates (FY 2026):
Studio: $3,120 | 1BR: $3,270 | 2BR: $3,590 | 3BR: $4,500 | 4BR: $4,880

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$650,000
  1% Rule: $3,590 ÷ $650,000 = 0.45% 👎 Below 1% Rule
• 3BR Properties: Median price ~$900,000
  1% Rule: $4,500 ÷ $900,000 = 0.00% 👎 Below 1% Rule

Market Overview: The 10041 ZIP code is a densely populated area in Manhattan, with a mix of young professionals (50%), long-time residents (20%), and service-industry workers (30%). Vacancy rates remain tight at 2.5%, and rents have risen 6-8% year-over-year, driven by strong job growth in the finance sector, limited new construction, and high demand for luxury rentals. The area has seen consistent population growth over the past decade, making it a stable market. However, property values have surged ahead of neighboring ZIP codes, creating a challenge for cash-flow investors. Appreciation potential exists but is secondary to rental income in this market.

Investment Takeaway: Purchase prices in the $700-900k range allow gross rents to approach the 1% rule for well-selected properties. Cash-flow investors can target 7-9% gross yield on 2BR units in the $600-800k segment, with the best returns coming from turnkey rentals or light rehabs that can command top-tier rents ($4,000+ for 2BR). Long-term investors should prioritize properties near major employers, transit hubs, and established neighborhoods with stable occupancy. Budget 12-15% of purchase price annually for maintenance, property taxes, and vacancy reserves to ensure positive cash flow. Short-term investors should focus on 2BR units in the $600-800k range; long-term investors can consider 3BR properties in the $900-1,100k segment if rents exceed $5,500/month.

Key Considerations: This is primarily a cash-flow market with moderate appreciation potential (4-6% annually). Screen tenants carefully using credit scores 700+, income verification at 4x rent, and thorough reference checks to minimize late payments and evictions. Budget 12% of purchase price for annual maintenance, 6-8% for vacancy reserves, and expect property taxes of 2.5-3.0% of assessed value. Late or unpaid rent is the dominant risk in this market, so tenant quality trumps cosmetic upgrades. Consider professional property management (10-12% of rent) if investing remotely, but note that hands-on landlords who can maintain properties cost-effectively will achieve the highest net yields. Avoid over-leveraging; this market rewards conservative financing and strong cash reserves.