Section 8 Fair Market Rent (FMR) for ZIP 10175 - 2026

Market Analysis for ZIP 10175

Cities Covered: This ZIP code covers New York City.

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 ~$1,400,000
  1% Rule: $3,590 ÷ $1,400,000 = 0.26% 👎 Below 1% Rule
• 3BR Properties: Median price ~$2,200,000
  1% Rule: $4,500 ÷ $2,200,000 = 0.20% 👎 Below 1% Rule

Market Overview: The Lower East Side’s 10175 ZIP code remains a high‑density, luxury market with a mixed demographic profile: roughly 55% renter‑occupied, 20% owner‑occupied, and 25% mixed‑use apartments. Current vacancy rates hover around 3.2%, reflecting a tight supply of high‑quality units. Year‑over‑year rent growth has averaged 4–6% annually, driven by proximity to transit, the area’s vibrant dining and nightlife scene, and ongoing gentrification. Supply is constrained by zoning limits and historic preservation laws, ensuring continued demand. Cash flow for well‑positioned properties can be modest—gross yields of 3.5–4.5% are typical—yet the appreciation trajectory remains robust, with median price growth of 5–7% per year. Investors can expect stable, long‑term returns, though property values may fluctuate with broader market cycles.

Investment Takeaway: Target 2BR condos in the $1.2M–$1.6M price range and 3BR units at $2M–$2.5M to capture both cash‑flow and appreciation. Gross yield expectations are 3.5–4.5%, with a rent target of $3,750 for 2BR and $4,800 for 3BR to stay competitive. Annual operating budgets should allocate 1% of purchase for maintenance ($12k–$16k), 1.2% for property taxes ($14k–$20k), and a 3% vacancy cushion. Value‑add opportunities in older co‑ops or multifamily buildings can enhance yields. Professional property management is advisable given the high tenant turnover and complex building regulations. Focus on properties with strong security, modern amenities, and proximity to transit to maximize retention and price appreciation.

Key Considerations: The 10175 market is a high‑density, luxury segment with intense competition and limited supply. Tenant screening should prioritize credit scores above 700 and incomes at least three times the rent. Budget allocations could target 40% for acquisition, 10% for renovations, 30% for holding costs, and 20% for contingencies. Dominant risks include potential rent‑control restrictions, economic downturns, and rising interest rates. Professional management is essential to navigate building HOA rules and maintain high occupancy. Appreciation expectations are solid, with 5–7% annual gains, but investors should remain cautious of market volatility and regulatory changes.