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 | $2,990 |
| 1 Bedroom | $3,150 |
| 2 Bedrooms | $3,430 |
| 3 Bedrooms | $4,340 |
| 4 Bedrooms | $4,750 |
| 5 Bedrooms | $5,510 |
| 6 Bedrooms | $6,171 |
| 7 Bedrooms | $6,665 |
| 8 Bedrooms | $6,998 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,340 | $1,458,770 | 0.3% | F |
| 4BR | $4,750 | $1,939,848 | 0.24% | F |
| 5BR | $5,510 | $2,972,213 | 0.19% | F |
U.S. Census Bureau data (2024)
Skeptical investors looking at ZIP 10504 may have several concerns regarding the viability of participating in the Section 8 housing program. Let's address these objections head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $3530 for ZIP 10504 in fiscal year 2024 be sufficient to cover the mortgage on a $1,648,589 home?
The FMR of $3530 is the maximum amount that landlords can charge tenants who receive rental assistance through the Section 8 program. To determine if this will cover a mortgage, we need to consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a $1,648,589 home would be approximately $8,200. This is significantly higher than the FMR, indicating that relying solely on Section 8 payments would not cover the mortgage. However, it's important to note that the property value might not reflect the median or average home price in the area. Landlords should assess their individual financial situations and seek professional advice before making investment decisions.
Objection 2: Is there enough tenant demand at a 9.9% participation rate in the Section 8 program?
A participation rate of 9.9% suggests that nearly 10% of renters in ZIP 10504 are utilizing the Section 8 voucher system. While this percentage may seem low, it indicates a substantial demand for affordable housing. In areas with high costs of living, such as ZIP 10504, which likely has a high cost of living based on the home price mentioned, this level of demand can be considered significant. It's also worth noting that the participation rate can fluctuate based on local economic conditions, changes in federal funding, and other factors. For small-portfolio investors, this participation rate can provide a stable tenant base and consistent income stream.
Objection 3: Will vouchers keep pace with market rents of $3,131?
The FMR of $3530 for ZIP 10504 is designed to reflect the average market rent for a standard two-bedroom apartment. With market rents at $3,131, the FMR provides a buffer that allows landlords to potentially charge slightly above the average market rent while still remaining within the guidelines. However, whether vouchers will keep pace with increasing market rents depends on HUD's annual adjustments to the FMR. If the FMR does not increase at the same rate as market rents, landlords could face a shortfall. Investors must monitor both the FMR and local market rent trends closely to ensure long-term financial stability.
In conclusion, while ZIP 10504 presents some challenges for landlords and small-portfolio investors, particularly around covering mortgage payments and keeping pace with market rents, the data also shows a significant demand for affordable housing. The decision to participate in the Section 8 program should be made after careful consideration of these factors and consultation with financial advisors.
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.