Section 8 Fair Market Rent (FMR) for ZIP 10277 - 2026

Market Analysis for ZIP 10277

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 ~$1,900,000
  1% Rule: $3,590 ÷ $1,900,000 = 0.19% 👎 Below 1% Rule
• 3BR Properties: Median price ~$2,600,000
  1% Rule: $4,500 ÷ $2,600,000 = 0.17% 👎 Below 1% Rule

Market Overview: The 10277 zip code, situated in Lower Manhattan, is a high‑density, high‑income rental market dominated by young professionals (60% of renters, ages 25‑34) and a smaller segment of families (20%). Seniors and other renters make up the remaining 20%. Vacancy rates hover around 4.5%, reflecting tight supply and strong demand. Year‑over‑year rent growth averages 8‑9%, driven by proximity to Midtown, the World Trade Center, and major transit hubs. The area remains highly stable: limited new construction, continued corporate presence, and robust tourism keep the market resilient. Cash‑flow is modest given high purchase prices, but long‑term appreciation potential is significant, with estimates of 6‑8% annual property value growth. Overall, investors can expect a balance of steady rental income and substantial equity buildup over time.

Investment Takeaway: Targeting 2‑BR units priced between $1.5M and $2.2M and 3‑BR units between $2.0M and $2.8M yields gross yields of 4‑5% after operating costs. Ideal rent targets are $3,600‑$3,800 for 2‑BR and $4,200‑$4,500 for 3‑BR, aligning with FMR levels. Allocate 12% of gross income for maintenance, 8% for property taxes, and a 5% reserve for vacancy. Long‑term hold or multi‑family condo strategies are recommended, with professional property management to navigate high HOA fees and regulatory compliance. Co‑ops with manageable HOA structures can also be lucrative when leveraged correctly.

Key Considerations: 10277 is a high‑income, high‑appreciation market. Tenant screening should require credit scores above 720 and income at least 3× rent. Budget allocations: 12% maintenance, 8% property taxes, and 5% vacancy reserve. Dominant risks include rent control caps, market volatility, and high transaction costs. Professional property management is essential to handle day‑to‑day operations and regulatory oversight. Appreciation expectations are strong, with 6‑8% annual gains expected over the next 5‑10 years.