Section 8 Fair Market Rent (FMR) for ZIP 10475 - 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 10475 (Bronx, NY) #### Section 8 Voucher Dynamics ZIP code 10475 is located in the Bronx, New York. The Fair Market Rent (FMR) for 2026 is as follows: - 0BR: $2170 - 1BR: $2260 - 2BR: $2510 (which is 48.0% of the median household income) - 3BR: $3120 - 4BR: $3370 Given that there is no recent Zillow data available, it is challenging to directly compare these FMRs to actual market rents. However, based on historical trends and the high renter percentage (57.5%), it can be inferred that the actual market rents are likely higher than the FMRs. This means that tenants using Section 8 vouchers may face significant constraints when searching for affordable housing units that accept their vouchers. #### Affordability & Renter Profile The median household income in ZIP 10475 is $62,712, and 57.5% of the population are renters. With a 95.9% occupancy rate, the market appears to be relatively tight, indicating a strong demand for rental properties. The fact that the FMR for a 2BR unit is 48.0% of the median income suggests that this area is moderately affordable for those relying solely on their income to cover rent. However, the high proportion of renters and the tight occupancy rate imply that competition for available units is fierce. #### Investor Angle From an investor perspective, the cash flow potential of properties in ZIP 10475 at the FMR levels needs to be evaluated. Given the high occupancy rate and the strong demand for rental units, properties that accept Section 8 vouchers could potentially be cash-flow positive. However, the actual profitability would depend on factors such as property management costs, maintenance expenses, and vacancy rates. To determine the investment grade, we need to consider the following: - **Cash Flow Potential**: Properties that can command rents above the FMR will have better cash flow potential. Since the FMRs are likely below market rates, the cash flow might be limited unless the property is well-managed and maintained. - **Demand**: The high renter percentage and occupancy rate indicate strong demand, which is favorable for investors. - **Risk**: The risk associated with accepting Section 8 vouchers includes stricter tenant screening processes and potential delays in rent payments due to administrative issues. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the FMRs, larger units (3BR and 4BR) are more likely to be rented out by families who can afford them. A 3BR unit at $3120 is still only 50% of the median household income, making it a reasonable target for families. Investors should consider acquiring or developing properties with larger units to cater to this demand. 2. **Understand Local Regulations**: The Bronx has specific regulations regarding the acceptance of Section 8 vouchers. Investors should familiarize themselves with these rules to ensure compliance and avoid potential legal issues. For instance, some landlords may require additional documentation or face restrictions on raising rents. 3. **Consider Property Management**: Due to the high demand and the potential complexities of managing Section 8 properties, investing in professional property management services could be beneficial. This ensures that the property remains well-maintained and that tenants are screened properly, reducing the risk of vacancies and delinquencies. #### Bottom Line For Section 8-focused investors, ZIP code 10475 presents a mixed picture. While the strong demand and high occupancy rate suggest a robust rental market, the tight constraints imposed by FMRs and the potential challenges of managing Section 8 properties mean that the investment grade is moderate. **Recommendation**: **Hold** Investors should hold off on purchasing properties solely based on the ability to accept Section 8 vouchers. Instead, they should focus on properties that can command rents above the FMR, particularly larger units. Additionally, understanding local regulations and investing in professional property management can help mitigate risks and improve the overall investment potential.

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.