Section 8 Fair Market Rent (FMR) for ZIP 10213 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 10213, located in New York County, are critical for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $3450. This SAFMR figure is specific to this ZIP code, reflecting localized rental market conditions.

A Section 8 voucher holder will pay 30% of their adjusted income toward rent. The remaining amount is subsidized by the government. For example, if a tenant's adjusted monthly income is $1000, they would pay $300 towards rent. The government would then cover the difference up to the SAFMR limit, which in this case is $3450.

In addition to the base rent subsidy, Section 8 also includes utility allowances. These allowances vary but typically cover a portion of electricity, gas, water, and sewer costs. Landlords should factor these into their overall rental income expectations when considering a Section 8 tenant.

To illustrate, let's assume an average utility allowance of $200 per month. If a landlord charges $3650 for a two-bedroom unit, the total monthly rent including utilities would be $3850. With a tenant paying $300, the government would subsidize $3150 ($3450 SAFMR - $300 tenant payment), leaving a shortfall of $700 ($3850 total - $3150 subsidy).

Alternatively, if a landlord sets the rent at $3450, the total including utilities would be $3650. With the same $300 tenant contribution, the government subsidy would be $3150, resulting in a shortfall of $250 ($3650 total - $3150 subsidy - $300 tenant payment).

The typical reimbursement gap for a two-bedroom unit in ZIP 10213, based on the SAFMR of $3450, is likely to be a shortfall unless the landlord adjusts the rent to match or be below the SAFMR. Given the high cost of living in New York County, many landlords might find themselves facing a significant gap between the SAFMR and the actual market rent, which can run much higher in this competitive area.

Landlords must carefully consider these factors when deciding whether to accept Section 8 tenants. While the program ensures timely rent payments, it may not fully cover the market rent, leading to a financial gap that the landlord must absorb.

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.