Section 8 Fair Market Rent (FMR) for ZIP 10138 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 10138, located in New York County, NY, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this particular ZIP code. For fiscal year 2024, the SAFMR for a two-bedroom apartment in ZIP 10138 is set at $3450. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant who uses a Section 8 housing choice voucher.

A voucher holder typically pays 30% of their adjusted income towards rent, while the remaining balance is covered by the Section 8 program. Utility allowances are also included but vary based on the tenant's actual usage and can be capped at a certain amount. These allowances reduce the amount the landlord receives from the housing authority, as they cover part of the tenant’s total housing costs.

To walk through an example, if a landlord charges $3450 for a two-bedroom unit, the tenant would pay 30% of their income towards rent, and the rest would be subsidized by the government up to the $3450 limit. If the tenant's portion is less than the difference between the total rent and the utility allowance, the landlord will receive a reimbursement that is lower than the posted SAFMR. Conversely, if the tenant's portion plus the utility allowance equals or exceeds the SAFMR, the landlord will receive the full $3450.

In ZIP 10138, the SAFMR is the rate set specifically for this ZIP code, meaning it reflects the local rental market conditions more accurately than a broader metro or county-level rate would. Given that the local market rent data is currently unavailable, it's important to compare the SAFMR against prevailing market rates to determine the financial impact on landlords.

Typically, the reimbursement gap or surplus in a high-cost area like ZIP 10138 could either be substantial or negligible, depending on the actual market rents. In cases where the market rents exceed the SAFMR, landlords might face a significant reimbursement gap, receiving less than what they charge for rent. However, if the market rents are lower than the SAFMR, landlords could see a surplus, where the voucher covers more than the market rate, effectively subsidizing tenants beyond the standard 30% contribution.

Given the SAFMR of $3450 for a two-bedroom unit in ZIP 10138, landlords should expect that the voucher reimbursement will closely align with this figure, minus the tenant's portion and any applicable utility allowances. To ensure profitability, landlords must carefully assess their costs and desired profit margins against the SAFMR and local market conditions.

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.