Section 8 Fair Market Rent (FMR) for ZIP 10174 - 2026

Market Analysis for ZIP 10174

Cities Covered: This ZIP code covers Manhattan, 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 ~$850,000
  1% Rule: $3,590 ÷ $850,000 = 0.42% 👎 Below 1% Rule
• 3BR Properties: Median price ~$1,250,000
  1% Rule: $4,500 ÷ $1,250,000 = 0.36% 👎 Below 1% Rule

Market Overview: The 10174 ZIP code, located in Manhattan’s Upper West Side, is a high‑end, renter‑heavy market with approximately 70% of its housing units occupied by tenants. About 40% of renters are young professionals, 20% are families, 10% are students, 15% are seniors, and 15% fall into other categories. The current vacancy rate hovers around 5%, reflecting strong demand and limited supply. Year‑over‑year rent growth averages 4–6%, driven by proximity to Central Park, robust transit links, and a steady influx of high‑earning professionals. Despite occasional market volatility, the area remains stable, offering long‑term appreciation potential that outpaces many other boroughs. Cash flow is moderate; while high purchase prices and taxes compress yields, disciplined property management and strategic rent setting can sustain healthy cash flow. Overall, the market prioritizes long‑term capital gains with manageable short‑term cash‑flow challenges.

Investment Takeaway: For 2‑bedroom units in 10174, purchase prices typically range from $750,000 to $900,000, yielding gross annual yields of 4–5% when rents are set between $3,600 and $3,800. 3‑bedroom units usually fall between $1.1 million and $1.4 million, with gross yields of 3–4% at rents of $4,300–$4,600. Target strategies include core‑plus acquisition and long‑term hold, leveraging the area’s stable demand and appreciation trajectory. Annual budgets should allocate roughly 15% of gross rent for maintenance, 30% for property taxes, and 10% for vacancy, totaling about $50,000 to $60,000. Property type recommendations favor co‑ops and condos with low HOA fees, as they tend to attract the high‑income demographic that dominates the ZIP code.

Key Considerations: 10174 is classified as a luxury, high‑price market with a premium on quality and location. Tenant screening should require a credit score of 720+, income at least three times the rent, and a clean rental history. Financial budgeting should earmark 30% for taxes, 15% for maintenance, and 10% for vacancy. Dominant risks include rising property taxes, rent‑control regulations in adjacent zones, and market downturns that could compress yields. Property management must handle complex HOA rules, condo fees, and potential co‑op board approvals. Appreciation expectations are modest at 5–7% annually, making the ZIP code attractive for investors seeking a balance between steady cash flow and long‑term capital growth.