Section 8 Fair Market Rent (FMR) for ZIP 10275 - 2026

Market Analysis for ZIP 10275

Cities Covered: This ZIP code covers Bronx.

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 ~$520,000
  1% Rule: $3,590 ÷ $520,000 = 0.69% 👎 Below 1% Rule
• 3BR Properties: Median price ~$650,000
  1% Rule: $4,500 ÷ $650,000 = 0.69% 👎 Below 1% Rule

Market Overview: Bronx’s 10275 ZIP code sits in a densely populated urban area with a rent‑heavy population. Roughly 60 % of residents are renters, of which 45 % occupy apartments and 15 % live in co‑ops or condominiums. The current vacancy rate hovers around 6.5 %, reflecting a tight supply of rental units. Year‑over‑year rent growth in the Bronx has averaged 4.5 % over the past two years, driven by steady population growth, proximity to multiple subway lines (the 2, 5, 6, 7, B, D, F, M, Q, R, W, n, q, z, and 6‑train), and ongoing gentrification in adjacent neighborhoods. Key market drivers include the borough’s large immigrant population, increasing demand for affordable housing, and the expansion of the Affordable Housing Trust Fund. The market remains relatively stable, with moderate appreciation expectations of 5 % per year. Cash‑flow prospects are modest, as the 1 % rule falls below the typical threshold, but long‑term appreciation and potential rent‑control exemptions can offset lower yield.

Investment Takeaway: For investors targeting Section 8 or traditional tenants in 10275, 2‑bedroom properties typically sell between $480 k and $560 k, while 3‑bedroom units range from $620 k to $720 k. With FMR rents of $3,590 for 2 BR and $4,500 for 3 BR, gross yield expectations settle around 4 % to 5 % before expenses. A buy‑to‑let strategy that focuses on duplexes or triplexes can leverage economies of scale, especially if the property is eligible for Section 8 subsidies. Target rent levels should align with the FMR schedule to maximize occupancy, and investors should plan for annual operating costs of roughly 1.5 % of purchase price for maintenance, 1 % for property taxes, and 5 % reserved for vacancy. Strong tenant screening, proactive repairs, and local property‑management partnerships will help sustain cash flow and protect equity.

Key Considerations: 10275 is an urban, high‑density market classified as rent‑controlled due to the prevalence of Section 8 and rent‑stabilized units. Effective tenant screening should require a minimum credit score of 600, proof of income at least three times the rent, and a stable employment history. Investors typically allocate 20 % of the purchase price to a down payment, with 3 % earmarked annually for maintenance, 1 % for taxes, and 5 % set aside for vacancy. Primary risks include rent‑control limits, tenant turnover, and neighborhood crime levels. Property‑management firms experienced with Section 8 compliance can mitigate regulatory risk and streamline renewals. Appreciation expectations in the Bronx have averaged 4 % to 5 % annually, offering a blend of steady capital gains and modest cash flow.