Section 8 Fair Market Rent (FMR) for ZIP 10459 - 2027

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 10459 (NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 10459 are as follows: - 0BR: $2170 - 1BR: $2260 - 2BR: $2510 (79.3% of median income) - 3BR: $3120 - 4BR: $3370 Given that there is no recent Zillow data available, we cannot directly compare these FMRs to actual rental prices. However, based on the high renter percentage (89.7%) and occupancy rate (95.5%), it can be inferred that the rental market in this area is likely tight, which could mean that actual rents might be close to or even above the FMRs. For voucher holders, the primary constraint is that their total rent payment (including their portion) must not exceed the FMR. Given the median household income of $38,006, the 2BR unit at $2510 represents a significant portion of the average income, indicating that many residents may rely heavily on vouchers to afford housing. #### Affordability & Renter Profile ZIP code 10459 has a population of 48,270, with 89.7% being renters. This suggests a highly rental-focused community where most residents are looking for affordable housing options. The median household income of $38,006 indicates that many residents have limited financial resources, making them prime candidates for Section 8 vouchers. The fact that the 2BR unit FMR is 79.3% of the median income highlights the affordability challenge faced by residents. With such a high renter percentage and a relatively low median income, it is likely that the market is tight, with landlords having the upper hand in setting rents. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow at the FMR levels. Assuming typical operating expenses and mortgage payments, the 2BR unit at $2510 would need to cover these costs to be profitable. If we consider that the median income is $38,006, and the 2BR unit is already a significant portion of this income, it implies that the market is competitive and that landlords need to ensure they are maximizing efficiency to achieve positive cash flow. The investment grade for this ZIP code would be moderate to low due to the high dependency on Section 8 vouchers and the tight rental market. Investors should be prepared for a scenario where they might face challenges in finding tenants who can pay above the FMR, especially if the actual market rents are near or slightly above the FMR levels. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high renter percentage and the affordability challenges, smaller units (0BR and 1BR) are likely to be more in demand. These units are also more manageable in terms of cost and maintenance. For example, a 0BR unit at $2170 or a 1BR unit at $2260 could provide a stable cash flow if managed efficiently. 2. **Consider Mixed-Income Developments**: To mitigate the risk associated with relying solely on Section 8 vouchers, investors might want to explore mixed-income developments. This strategy involves a mix of subsidized and market-rate units, allowing for a more balanced tenant profile and potentially higher overall returns. 3. **Engage with Local Housing Authorities**: Building strong relationships with local housing authorities can help secure a steady stream of Section 8 tenants. This is particularly important given the high renter percentage and the tight market conditions. Ensuring that your property meets all the necessary requirements for Section 8 eligibility will be crucial. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 10459 is to **Hold**. While the market is tight and there is a high demand for rental units, the reliance on vouchers and the moderate to low investment grade suggest that the returns may be limited. Investors should carefully manage their properties and consider diversifying their portfolio to include a mix of subsidized and market-rate units to balance risk and reward. In summary, the high renter percentage and tight market indicate strong demand, but the limited median income and high FMR constraints make it challenging to achieve high returns. Therefore, holding existing investments or cautiously expanding into smaller units is advised.

Data Sources: FMR data from HUD (2027). 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.