Section 8 Fair Market Rent (FMR) for ZIP 10274 - 2026

Market Analysis for ZIP 10274

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 ~$1,800,000
  1% Rule: $4,500 ÷ $1,800,000 = 0.25% 👎 Below 1% Rule

Market Overview: The 10274 ZIP code, located in Manhattan’s West Side, hosts a predominantly renter‑heavy demographic with approximately 68% of households renting and 32% owning. Long‑term renters make up 60% of the renter population, short‑term renters 25%, and the remaining 15% include corporate housing and transient occupants. The current vacancy rate hovers at 4.5%, reflecting a tight market. Year‑over‑year rent growth has averaged 5–7% over the past three years, driven by sustained demand from tech firms, professional services, and luxury hospitality. The market remains stable, supported by high‑income residents and limited new supply. While gross yields are modest—typically 0.3–0.4%—appreciation potential is strong, with median home values rising 4–5% annually. Investors often find a balanced trade‑off between reliable cash flow and significant capital gains in this area.

Investment Takeaway: Investment in 10274 should target 2‑bedroom condos priced between $1.1 million and $1.5 million and 3‑bedroom units between $1.6 million and $2.0 million. Gross yields will fall in the 0.3–0.4% range, but the potential for 4–5% annual appreciation offsets the low cash flow. Target rents are $3,600–$3,800 for 2‑BR and $4,500–$4,700 for 3‑BR to stay competitive. Allocate about 8% of the purchase price annually for maintenance (1%), taxes (1.5%), and vacancy (5%). Prefer mid‑size condos or co‑ops with professional property management to handle the high tenant turnover typical of the West Side.

Key Considerations: 10274 is a high‑growth, high‑absorption market that requires rigorous tenant screening—credit scores above 700 and income at least three times the rent—to mitigate turnover risk. Budgeting should include 1% maintenance, 1.5% property taxes, and a 5% vacancy reserve. Major risks involve rising interest rates, elevated entry costs, and potential market volatility. Professional property management is essential to navigate the short‑term rental segment and maintain consistent occupancy. Appreciation expectations remain robust at 4–5% per year, making long‑term hold strategies attractive for investors seeking both cash flow and capital appreciation.