Location: New York, NY | Metro: New York, NY HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,110 |
| 1 Bedroom | $3,270 |
| 2 Bedrooms | $3,560 |
| 3 Bedrooms | $4,510 |
| 4 Bedrooms | $4,940 |
| 5 Bedrooms | $5,730 |
| 6 Bedrooms | $6,418 |
| 7 Bedrooms | $6,931 |
| 8 Bedrooms | $7,278 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,510 | $997,476 | 0.45% | F |
| 4BR | $4,940 | $1,273,776 | 0.39% | F |
U.S. Census Bureau data (2024)
The ZIP code 10502 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant risk, with market rents averaging $3,501 compared to the Federal Market Rent (FMR) of $2,750 for fiscal year 2024. This discrepancy can lead to higher vacancy rates and financial strain on landlords who must wait for voucher approvals that do not cover the full market rent. Vacancy exposure is another concern, as the days on market (DOM) is listed as N/A, indicating a lack of recent data on how quickly properties typically fill. This uncertainty can be costly if vacancies persist longer than expected.
The area's typical home value of $1,005,428 contrasts sharply with the median income of $250,001, suggesting a potential for deferred maintenance issues. Property owners might struggle to keep up with necessary repairs and improvements without the financial cushion provided by higher market rents. However, these risks are mitigated by the high renter share of 16.1%, which often correlates with a greater demand for rental housing and, consequently, Section 8 vouchers. The dense rental market indicates a robust pool of potential tenants, which can help stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 10502 supports a moderate risk assessment for first-time Section 8 landlords. The area offers a balance between risks and opportunities, making it suitable for investors willing to manage the complexities associated with lower-income housing vouchers.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.