Section 8 Fair Market Rent (FMR) for ZIP 10304 - 2027

Investment Score for ZIP 10304

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,380
1 Bedroom	$2,510
2 Bedrooms	$2,730
3 Bedrooms	$3,450
4 Bedrooms	$3,790
5 Bedrooms	$4,396
6 Bedrooms	$4,924
7 Bedrooms	$5,318
8 Bedrooms	$5,584

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,730	$519,601	0.53%	F
3BR	$3,450	$694,692	0.5%	F
4BR	$3,790	$1,058,063	0.36%	F
5BR	$4,396	$1,301,016	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 10304 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 10304 in Richmond County, New York, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,640, which represents 44.3% of the median household income in the area. However, the actual median rent for a two-bedroom unit on Zillow is significantly higher at $510,411. This means that the price-to-FMR ratio is 16.1x, indicating that actual rents are much higher than the FMR. For Section 8 voucher holders, this presents a significant challenge. The voucher amount of $2,640 would likely be insufficient to cover the actual market rent for a two-bedroom unit, especially given the high price-to-FMR ratio. Consequently, voucher holders would need to find units priced below the market average, which can be difficult in such a competitive rental market. #### Affordability & Renter Profile ZIP code 10304 has a population of 45,658, with 50.8% of residents being renters. The occupancy rate is 91.6%, suggesting a relatively tight rental market. Given the median household income of $71,561, many residents may struggle to afford the high rents, particularly for larger units like three-bedroom ($3,310) and four-bedroom ($3,590) apartments. The high proportion of renters indicates a strong demand for rental housing. However, the affordability issue is exacerbated by the high price-to-FMR ratio, making it challenging for low-income households to find suitable accommodation. This tight market could lead to increased competition among renters, potentially driving up rents further. #### Investor Angle From an investor perspective, the FMRs provide a baseline for rental pricing. However, the actual median rents far exceed these figures. A two-bedroom unit priced at the FMR of $2,640 would be significantly below the market average of $510,411. While this could attract Section 8 tenants, it would also mean lower cash flow compared to market rates. To determine if the ZIP is cash-flow positive at FMR, we must consider the potential for attracting Section 8 tenants and the associated administrative costs. The FMRs are designed to ensure that low-income households can afford decent housing, but they do not necessarily reflect the true market value. Therefore, an investor focusing solely on Section 8 vouchers would likely face challenges in achieving positive cash flow, especially considering the high cost of acquisition and maintenance in this area. The investment grade for this ZIP code would be moderate to low due to the high acquisition costs and the difficulty in securing long-term, stable tenancy from Section 8 voucher holders. Additionally, the high price-to-FMR ratio suggests that there is limited room for appreciation in rental values, which could impact long-term returns. #### Specific Actionable Insights 1. **Target Smaller Units**: Investors should focus on smaller units, such as one-bedroom apartments, where the FMR is $2,410. These units are more likely to be affordable for Section 8 voucher holders and may have a better chance of attracting tenants. Additionally, the occupancy rate of 91.6% suggests that there is still strong demand for smaller units. 2. **Consider Location-Specific Factors**: Within ZIP code 10304, there may be pockets where rents are closer to the FMR. Investors should conduct thorough neighborhood research to identify areas with lower rents. This could involve looking at specific streets or blocks where the rental market is less competitive. 3. **Diversify Tenant Base**: Given the high price-to-FMR ratio, investors might consider diversifying their tenant base beyond just Section 8 voucher holders. Offering a mix of market-rate and subsidized units could help balance cash flow and reduce dependency on government subsidies. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 10304 is to **Skip**. The high price-to-FMR ratio and limited room for rental appreciation make it a challenging environment for achieving positive cash flow. Additionally, the tight rental market and high acquisition costs suggest that the returns may not justify the investment risk. Investors should look for ZIP codes with a more favorable price-to-FMR ratio and lower acquisition costs to maximize their returns.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

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.