Section 8 Fair Market Rent (FMR) for ZIP 10306 - 2027

Investment Score for ZIP 10306

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	$2,460
1 Bedroom	$2,590
2 Bedrooms	$2,820
3 Bedrooms	$3,570
4 Bedrooms	$3,910
5 Bedrooms	$4,536
6 Bedrooms	$5,080
7 Bedrooms	$5,486
8 Bedrooms	$5,760

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
1BR	$2,590	$366,832	0.71%	D
2BR	$2,820	$543,575	0.52%	F
3BR	$3,570	$759,029	0.47%	F
4BR	$3,910	$962,319	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 10306 (New York, NY) #### Section 8 Voucher Dynamics In ZIP code 10306, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2670 per month. However, the Zillow median price for a two-bedroom property is significantly higher at $541,502, indicating that the actual rental prices in the area are likely much higher than the FMR. The price-to-FMR ratio of 16.9x suggests that the average rent for a two-bedroom unit could be around $45,000 annually, which is far above the FMR threshold. This means that tenants using Section 8 vouchers will face significant constraints in finding suitable housing within the FMR limits. They would need to search for units that are priced below or at the FMR, which might be scarce given the high median property value. #### Affordability & Renter Profile ZIP code 10306 has a median household income of $96,866, and 30.7% of the population are renters. The occupancy rate stands at 93.9%, indicating a relatively tight market where most available units are occupied. Given that 33.1% of the median income is required to afford a two-bedroom apartment at the FMR, it is clear that the majority of residents in this ZIP code can afford to live here without assistance. However, those who do rely on Section 8 vouchers would find it challenging to secure housing due to the limited supply of affordable units. The high median property value and occupancy rate suggest that the market is competitive and likely oversupplied with expensive properties rather than affordable ones. #### Investor Angle From an investor’s perspective, the FMR for a two-bedroom apartment is $2670, which is considerably lower than the median rental prices implied by the Zillow median home value. To determine if this ZIP code is cash-flow positive at FMR, we must consider the typical rental rates. If the average rent for a two-bedroom unit is approximately $45,000 annually, then renting at the FMR would result in a significant discount compared to market rates. For investors focusing on Section 8 vouchers, the cash flow would be positive if they can secure tenants willing to pay the FMR. However, the challenge lies in the limited number of units that fall within the FMR range, making it difficult to achieve a steady cash flow. The investment grade for this ZIP code would be moderate to low for Section 8-focused investors. While there is potential for positive cash flow, the scarcity of affordable units and the competition for tenants make it a less attractive option compared to other areas with a higher proportion of units within the FMR range. #### Specific Actionable Insights 1. **Target Affordable Units**: Investors should focus on acquiring properties that are priced at or below the FMR. For instance, a two-bedroom apartment priced at $2670 or less would be ideal for attracting Section 8 voucher holders. This strategy would ensure a stable tenant base and positive cash flow. 2. **Consider Smaller Units**: Given the high cost of larger units, investors might want to consider smaller one-bedroom apartments, which have an FMR of $2440. These units are more likely to be rented out by voucher holders and could provide a better return on investment. 3. **Explore Renovation Opportunities**: There may be older properties that can be renovated to meet modern standards while still remaining within the FMR range. This could involve updating kitchens and bathrooms, improving energy efficiency, and enhancing the overall living conditions to attract voucher holders. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 10306 is to **skip**. The high median property values and the tight market make it challenging to find units that fall within the FMR range. Additionally, the limited number of affordable units and the competition for tenants mean that achieving a steady cash flow would be difficult. Investors looking for more favorable conditions should consider other ZIP codes with a higher proportion of units within the FMR range and a larger pool of potential Section 8 tenants.

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.