Location: New York, NY | Metro: New York, NY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,210 |
| 1 Bedroom | $3,380 |
| 2 Bedrooms | $3,680 |
| 3 Bedrooms | $4,660 |
| 4 Bedrooms | $5,100 |
| 5 Bedrooms | $5,916 |
| 6 Bedrooms | $6,626 |
| 7 Bedrooms | $7,156 |
| 8 Bedrooms | $7,514 |
The analysis for ZIP code 10055 reveals incomplete data points, making it challenging to provide a comprehensive Section 8 cap-rate picture. However, we can derive some insights based on the available information.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 10055 for FY 2024 is set at $3450 annually. This figure represents the government's benchmark for rental assistance under the Section 8 program. Given that the median home value is not available, we cannot directly calculate the implied gross yield for homeowners participating in the Section 8 program. Typically, the gross yield would be derived by comparing the annual rental income to the property value. Without the median home value, this calculation is impossible.
The market rent for a 2-bedroom apartment is also listed as N/A, indicating that there is no reliable data on what tenants might pay in the open market. This absence of market rent data further complicates the analysis, as it prevents us from understanding how much below market rate the Section 8 rent might be. In most cases, Section 8 rents are lower than market rates, which could imply a lower gross yield for landlords.
The renter density and days on market (DOM) are also not provided, which are crucial metrics for assessing the local rental market's health and the potential demand for Section 8 properties. Renter density helps understand the proportion of renters in the area, while DOM indicates how quickly properties are rented out, reflecting tenant demand.
In summary, while the 2BR FMR of $3450 provides a baseline for annual rental income under the Section 8 program, the lack of median home values and market rents means we cannot accurately calculate the implied gross yield. The scenario where the FMR is used as the sole rental income source is the only concrete one presented here. Landlords should seek additional data on median home values and market rents to perform a more thorough analysis of potential yields and risks associated with Section 8 properties in ZIP 10055.
Data Sources: FMR data from HUD (2027).
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.