Location: New York, NY | Metro: New York, NY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,370 |
| 1 Bedroom | $3,550 |
| 2 Bedrooms | $3,860 |
| 3 Bedrooms | $4,880 |
| 4 Bedrooms | $5,360 |
| 5 Bedrooms | $6,218 |
| 6 Bedrooms | $6,964 |
| 7 Bedrooms | $7,521 |
| 8 Bedrooms | $7,897 |
U.S. Census Bureau data (2024)
The analysis for ZIP 10501 in Amawalk, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 10501 in fiscal year 2024 is $2,790, while the average market rent is $3,483 per month. This represents a gap of $693, or approximately 25%, indicating that the market rent is higher than the FMR.
In this context, landlords accepting Section 8 tenants face a cost of housing these voucher tenants below the open-market rates. With only 4.2% of residents being renters and a median home value of $826,968, the market suggests that the majority of the population owns homes. However, the median income in the area is $220,449, which implies that there is sufficient economic capacity to support higher rents.
The disparity between FMR and market rent means that landlords must consider the reduced cash flow from Section 8 tenants. While the overall investment appeal of the ZIP is rated at 3.0 out of 5, with a mixed signal market, the yield potential is low due to the negative leverage situation. The current 30-year mortgage rate of 6.3% exceeds the estimated cap rate of 3.3%, reducing cash-on-cash returns.
To summarize, the gap between FMR and market rent in ZIP 10501 is substantial, and landlords should be aware of the lower returns when accepting Section 8 tenants. The market is not ideal for first-time investors and requires hands-on management and local knowledge.
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.