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 | $930,561 | 0.44% | F |
| 2BR | $4,460 | $2,008,006 | 0.22% | F |
| 3BR | $5,640 | $3,412,136 | 0.17% | F |
| 4BR | $6,190 | $5,836,519 | 0.11% | F |
| 5BR | $7,180 | $10,021,708 | 0.07% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 10065 in New York, NY, reveals a unique balance between yield and stability that does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents an area where investors can expect moderate yields with relatively stable conditions.
First, let's consider the yield. The Fair Market Rent (FMR) for ZIP 10065 in fiscal year 2024 is set at $4,130, which is slightly below the market rent of $4,359. This indicates that rental properties in this ZIP code will generate close to market-level income, but with a slight discount due to the FMR cap. The median home value stands at $1,600,763, suggesting that the area is primarily residential with high property values. However, the rental income potential, when compared to the median home value, points towards a moderate yield scenario. For instance, if we assume a typical rental yield calculation based on property value, the annual rental income would be around $52,000, which is 3.25% of the median home value. This is not particularly high, indicating that while there is decent income generation, it is not exceptionally lucrative relative to the property price.
Moving on to stability, ZIP 10065 has a substantial 63.8% of residents who are renters, showing a strong demand for rental housing. Additionally, the Days on Market (DOM) average of 128 days suggests that properties are typically occupied or sold quickly once they become available. This low DOM figure implies that there is little risk of prolonged vacancy, contributing to overall stability. Furthermore, the median household income of $155,331 provides a solid financial base for tenants, reducing the likelihood of default and enhancing the predictability of cash flows.
In summary, ZIP 10065 is best classified as a zone that offers moderate yields with relatively stable conditions. The rental income is competitive, and the high percentage of renters combined with a low DOM and strong median income supports a stable investment environment. While it doesn't offer the high returns seen in some flip-style markets, nor the guaranteed long-term cash flow typical of steady-cashflow zones, it presents a balanced opportunity for investors seeking both reasonable returns and security.
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.