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 |
The analysis for ZIP code 10268 in New York reveals some limitations due to missing data points, particularly regarding the median home value and market rent. However, we can still derive a rough cap-rate picture using the available Fair Market Rent (FMR) data for a 2-bedroom apartment, which is set at $3450 annually for fiscal year 2024.
To calculate the implied gross yield for a property under the Section 8 program, we need to know the median home value. Unfortunately, this figure is currently unavailable. Without the median home value, it's impossible to calculate an exact cap rate for the area. However, assuming typical cap rate ranges for rental properties, we can infer that the annualized FMR of $3450 would translate into a lower gross yield compared to market rents if they were higher.
Given that the market rent is also listed as N/A, we cannot directly compare it to the FMR. In a typical scenario where market rents exceed FMRs, the gross yield would be higher for market rents. This suggests that if there were market rent data available, it would likely indicate a better potential for gross yield than what the Section 8 program offers.
The lack of specific renter density percentage and days on market (DOM) further complicates a precise analysis. Generally, higher renter density and shorter DOM periods suggest a more robust rental market, which could favor market rents over Section 8 rents. However, without these figures, it's difficult to ascertain the exact dynamics of the rental market in ZIP 10268.
In conclusion, while the exact cap rate and gross yield cannot be determined due to missing data, it is clear that the Section 8 FMR of $3450 annually would result in a lower gross yield compared to what might be achieved with market rents. Landlords and small-portfolio investors should seek additional information on local market conditions to make informed decisions.
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.