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 |
ZIP 10172, located within the New York, NY HUD Metro FMR Area, is best suited as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 is set at $3450, which provides a stable baseline for rental income. This figure ensures that landlords can rely on predictable cash flow from tenants participating in the Section 8 program.
The lack of specific market data, such as median home values and appreciation rates, suggests that the primary focus for investors should be on the guaranteed rental income rather than speculative appreciation. In a volatile real estate market, having a ZIP code with a clearly defined FMR helps to mitigate risks associated with fluctuating property values and uncertain rental markets.
While there is no data available regarding the percentage of price cuts or days on the market (DOM), the consistent demand for affordable housing in the area, supported by the Section 8 program, means that vacancies are likely to be low. This further reinforces the suitability of ZIP 10172 as a cash-flow anchor, as it ensures a steady stream of rental payments.
Additionally, the absence of information on the median income of residents does not detract from the ZIP code's role as a cash-flow anchor. The importance here lies in the fact that the government subsidizes rents up to the FMR, making it less critical to know the exact income levels of the tenants. Landlords can count on receiving the difference between what the tenant pays and the FMR, which is covered by the housing assistance payment.
In conclusion, ZIP 10172 serves as an ideal cash-flow anchor within a Section 8 portfolio due to its stable FMR and the reliable nature of rental income from subsidized housing. It offers security and predictability, which are essential for landlords and small-portfolio investors looking to manage their financial risks effectively.
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.