Section 8 Fair Market Rent (FMR) for ZIP 10281 - 2027

Location: New York, NY | Metro: New York, NY HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

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

To determine if you should buy in ZIP code 10281 for Section 8 investments, follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for ZIP 10281 in fiscal year 2024 is set at $3450. This figure must cover the debt service on any property you're considering. If your property's debt service is lower than $3450, proceed to Step 2. Otherwise, the answer is no; the FMR does not sufficiently cover the debt service.

Step 2: Market Rent Comparison

Compare the FMR of $3450 to the average market rent in ZIP 10281. If the market rent is significantly higher, then relying solely on Section 8 might not be optimal as you could potentially earn more with market-rate tenants. If market rent is around or slightly below $3450, Section 8 can be a viable option. If the market rent is well below the FMR, you would still clear debt service, but it indicates a weaker rental market overall.

Step 3: Demand Analysis

Assess the percentage of renters and the days on market (DOM) for properties in ZIP 10281. If the percentage of renters is high and the DOM is low, there is strong demand for rentals, which supports the viability of a Section 8 investment. Conversely, if the percentage of renters is low and the DOM is high, it suggests weak demand, making it harder to find tenants and maintain occupancy.

Note: The specific percentages and DOM figures for ZIP 10281 are currently unknown and need to be researched for a precise analysis. However, based on the FMR and market rent comparison alone, you can make an informed decision about whether Section 8 is a suitable investment strategy in this area.

Summary:

Yes: If the FMR covers debt service and market rent is around or slightly below the FMR, especially if there is strong tenant demand.
No: If the FMR does not cover debt service or if market rent is significantly higher, indicating that Section 8 may not be the most profitable route.
It Depends: If the FMR covers debt service but market rent is below the FMR, the outcome hinges on the strength of tenant demand.

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.