Section 8 Fair Market Rent (FMR) for ZIP 10461 - 2027

Investment Score for ZIP 10461

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	$2,730
1 Bedroom	$2,880
2 Bedrooms	$3,130
3 Bedrooms	$3,960
4 Bedrooms	$4,340
5 Bedrooms	$5,034
6 Bedrooms	$5,638
7 Bedrooms	$6,089
8 Bedrooms	$6,393

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	$2,880	$300,194	0.96%	C
2BR	$3,130	$575,995	0.54%	F
3BR	$3,960	$755,060	0.52%	F
4BR	$4,340	$833,794	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 10461 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 10461 is set by HUD for 2026, with the following figures: - 0BR: $2620 - 1BR: $2750 - 2BR: $3020 - 3BR: $3780 - 4BR: $4110 These FMRs represent the maximum rent that a Section 8 voucher holder can pay for a unit in this area. However, the actual rents in the market often exceed these amounts. For instance, the Zillow median price for a 2BR unit is $570,136, which translates to a monthly rental cost of approximately $4751 based on a typical mortgage payment (assuming a 30-year fixed rate mortgage at 4.5% interest). This is significantly higher than the FMR of $3020, indicating that voucher holders face substantial constraints in finding affordable housing. The price-to-FMR ratio of 15.7x further underscores the gap between market rents and what is covered by the vouchers. #### Affordability & Renter Profile ZIP code 10461 has a population of 52,012, with 70.3% of residents being renters. This high percentage suggests a strong demand for rental properties in the area. The occupancy rate stands at 94.0%, indicating that the market is relatively tight, with few vacancies available. Given the median household income of $67,028, the 2BR FMR of $3020 represents 54.1% of the median income, which means that even without a voucher, many residents would struggle to afford market-rate rentals. This tight market and high renter concentration imply that there is significant competition among renters, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the cash flow potential at FMR levels needs to be carefully evaluated. The FMR for a 2BR unit is $3020, but the actual market rent is much higher at around $4751. This means that an investor who relies solely on FMR rates will likely experience negative cash flow, especially when factoring in property management costs, maintenance, and other expenses. The investment grade for this ZIP code would be considered low due to the limited number of units that fall within the FMR range and the high competition for affordable housing. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should seek out properties where the rent is below the FMR to ensure positive cash flow. For example, a 2BR unit rented at $2500 per month would provide a better financial outcome compared to renting at market rates. 2. **Consider Renovation Projects**: Given the high demand for affordable housing, investors might consider purchasing older properties and renovating them to meet FMR standards. This could involve converting larger units into smaller ones that fit within the FMR limits, thereby increasing the likelihood of attracting Section 8 tenants. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help secure a steady stream of Section 8 tenants. These authorities often have waiting lists and can facilitate the placement of eligible tenants into FMR-compliant units. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 10461 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to find properties that offer positive cash flow at FMR levels. Additionally, the significant gap between FMR and market rents indicates that the majority of units are not affordable for voucher holders, leading to a limited pool of potential tenants. While there is a strong demand for rental properties, the constraints imposed by the FMR system make this ZIP code less attractive for investors looking to capitalize on Section 8 vouchers.

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.