Section 8 Fair Market Rent (FMR) for ZIP 10176 - 2026

Market Analysis for ZIP 10176

Cities Covered: This ZIP code covers 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 ~$1,200,000
  1% Rule: $3,590 ÷ $1,200,000 = 0.30% 👎 Below 1% Rule
• 3BR Properties: Median price ~$1,700,000
  1% Rule: $4,500 ÷ $1,700,000 = 0.26% 👎 Below 1% Rule

Market Overview: In ZIP 10176, approximately 82% of residents are renters and 18% are owners, with renters segmented into 48% young professionals, 22% families, 14% students, and 16% other demographics. The current vacancy rate stands at 2.5%, reflecting a tight rental market. Year‑over‑year rent growth averages 4.5% to 6% in recent years, driven by high demand for Manhattan apartments, limited supply, and the neighborhood’s proximity to major business districts and cultural venues. Market stability remains robust, supported by strong economic fundamentals and a diverse tenant base, yet investors should monitor regulatory changes such as rent stabilization policies. Positive cash flow is achievable but modest; however, the area offers significant appreciation potential, with historical increases around 5% to 7% per year, making it attractive for long‑term investors prioritizing capital gains alongside rental income.

Investment Takeaway: Investment opportunities in 10176 typically involve 2BR units priced between $1.0M and $1.3M and 3BR units between $1.5M and $1.8M. Gross yield expectations after accounting for operating expenses hover around 3% to 4%. Target rent levels align with the FMR: $3,590 for 2BR and $4,500 for 3BR. An annual maintenance reserve of 1% of purchase price ($12k for a 2BR), property taxes at 1.5% ($18k), and a vacancy allowance of 2.5% of rent ($108k) should be factored into budgeting. Small condominium apartments or low‑rise multifamily buildings are recommended, as they combine manageable management with strong demand from professionals and families.

Key Considerations: This ZIP code is classified as a high‑end urban rental market. Tenant screening should emphasize credit scores above 700, income exceeding 3× the monthly rent, and verifiable employment. Acquisition budgets typically allocate 70% to purchase, 10% to potential rehab, 5% to reserve funds, and 15% to financing. Principal risks include rent‑control regulations, market volatility during economic downturns, and higher vacancy rates during off‑peak seasons. Professional property management is essential to maintain high tenant satisfaction and comply with city ordinances. Appreciation expectations are moderate to high, with annual gains projected between 4% and 6% over the next five years.