Section 8 Fair Market Rent (FMR) for ZIP 10451 - 2027

Investment Score for ZIP 10451

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	$2,280
1 Bedroom	$2,390
2 Bedrooms	$2,620
3 Bedrooms	$3,280
4 Bedrooms	$3,570
5 Bedrooms	$4,141
6 Bedrooms	$4,638
7 Bedrooms	$5,009
8 Bedrooms	$5,259

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	$2,390	$272,544	0.88%	C
2BR	$2,620	$347,072	0.75%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 10451 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 10451 in 2026 is set at $2510 for a two-bedroom unit, which represents 77.7% of the median household income in the area. However, the actual median rent for a two-bedroom unit on Zillow is significantly higher at $355,162, resulting in a price-to-FMR ratio of 11.8x. This indicates that the actual market rents far exceed the FMR rates set by HUD, creating a challenging environment for Section 8 voucher holders. The voucher holders would find it difficult to secure housing within their budget constraints, as landlords might be reluctant to accept vouchers due to the high discrepancy between FMR and market rates. #### Affordability & Renter Profile ZIP code 10451 has a population of 50,942, with 86.4% of residents being renters. The occupancy rate stands at 97.0%, suggesting a very tight rental market with little vacancy. Given the median household income of $38,770, most residents are likely to struggle with the high cost of living, especially when it comes to renting a two-bedroom apartment at the median market rate of $355,162. The high rent-to-income ratio implies that the majority of renters in this area are low-income individuals who rely heavily on government assistance such as Section 8 vouchers to afford housing. The tight market conditions mean that there is strong demand for rental units, but the supply is limited. This makes it difficult for low-income renters to find affordable housing options without subsidies. The high occupancy rate also suggests that any new rental units entering the market are quickly absorbed, leading to sustained pressure on rents. #### Investor Angle From an investor perspective, the FMR rates provide a benchmark for what the government will subsidize. For a two-bedroom unit, the FMR is $2510, while the median market rent is $355,162. This means that if an investor were to purchase a property and rent it out at the FMR rate, they would be operating at a significant discount compared to the market rate. To determine if this ZIP code is cash-flow positive at the FMR rate, we need to consider the typical costs associated with owning and managing rental properties. Assuming a conservative estimate of 1% of the purchase price as monthly maintenance costs, the monthly maintenance cost for a $355,162 property would be approximately $3551.62. When comparing this to the FMR of $2510, it becomes clear that renting at the FMR rate would result in negative cash flow for investors. Furthermore, the investment grade for this ZIP code is likely to be low due to the high risk of vacancy and the difficulty in finding tenants willing to pay the FMR rate. The tight market conditions and high demand for rental units make it challenging for investors to achieve positive cash flow at FMR rates, especially given the high maintenance costs associated with urban properties. #### Specific Actionable Insights 1. **Targeting Subsidized Housing**: Investors should focus on developing or acquiring properties specifically designed to cater to subsidized housing programs like Section 8. By doing so, they can ensure that their rental units are attractive to voucher holders and can potentially receive additional support through government programs aimed at increasing affordable housing stock. 2. **Rent Stabilization**: Given the high price-to-FMR ratio, investors could consider lobbying for rent stabilization policies that would bring market rents closer to FMR rates. This would make it easier for voucher holders to find suitable housing and could improve the overall affordability of the neighborhood. 3. **Community Partnerships**: Engaging with local community organizations and advocacy groups can help investors understand the needs of low-income renters better and potentially access resources or incentives that can offset some of the financial risks associated with operating at FMR rates. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 10451 is to **Skip**. The high price-to-FMR ratio and the resulting negative cash flow at FMR rates make it financially unfeasible to operate in this market without significant subsidies or policy changes. Additionally, the tight market conditions and high occupancy rates suggest that there is limited opportunity for new rental units to enter the market and achieve positive cash flow at FMR rates. Therefore, investors should look for other ZIP codes where the FMR is closer to the actual market rent, providing a more favorable environment for both cash flow and tenant acquisition.

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.