Section 8 Fair Market Rent (FMR) for ZIP 10272 - 2026

Market Analysis for ZIP 10272

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 ~$1,650,000
  1% Rule: $3,590 ÷ $1,650,000 = 0.22% 👎 Below 1% Rule
• 3BR Properties: Median price ~$2,100,000
  1% Rule: $4,500 ÷ $2,100,000 = 0.21% 👎 Below 1% Rule

Market Overview: The 10272 ZIP code, located in Manhattan’s Lower East Side, hosts a highly concentrated renter population with approximately 70% of residents renting and 30% owning. Within the renter segment, 60% are young professionals, 20% are students, 10% are families, and 10% are other demographics. Vacancy rates remain low at about 3.5%, reflecting strong demand. Year‑over‑year rent growth has averaged 4–6% over the past three years, driven by proximity to downtown, cultural attractions, and limited supply. The market is stable, offering robust appreciation potential; however, cash‑flow margins are thin due to the 1% rule deficits. Investors can expect modest yields but significant long‑term equity gains as property values climb in this high‑income district.

Investment Takeaway: Investment in 10272 should target property prices between $1.6 million and $2.1 million. Gross yield expectations hover around 0.2–0.3% annually, reflecting the 1% rule shortfall. A buy‑and‑hold strategy is prudent, focusing on condominium or co‑op multi‑family units that can command rents of $3,600–$4,800 for 2BR and $4,500–$5,400 for 3BR. Annual budgets should allocate roughly 1% of value ($16–$21 k) for maintenance, 2% ($32–$42 k) for taxes, and 3% ($48–$63 k) for vacancy reserves. Professional property management is advisable to navigate the tight rental market and regulatory environment.

Key Considerations: 10272 is classified as a high‑end urban market with strong appreciation expectations of 5–7% per year. Tenant screening should prioritize credit scores above 700, income at least three times the rent, and stable employment history. Budget allocations should include 1% for maintenance, 3% for vacancy, and 5% for reserves. Dominant risks include regulatory changes affecting short‑term rentals and potential rent‑control adjustments. Effective property management is essential to maintain high occupancy and comply with city ordinances.