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 | $3,890 |
| 1 Bedroom | $4,100 |
| 2 Bedrooms | $4,460 |
| 3 Bedrooms | $5,640 |
| 4 Bedrooms | $6,190 |
| 5 Bedrooms | $7,180 |
| 6 Bedrooms | $8,042 |
| 7 Bedrooms | $8,685 |
| 8 Bedrooms | $9,119 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $5,640 | $1,266,029 | 0.45% | F |
| 4BR | $6,190 | $1,660,339 | 0.37% | F |
| 5BR | $7,180 | $2,779,698 | 0.26% | F |
U.S. Census Bureau data (2024)
The ZIP code 10506 represents a high-end residential neighborhood characterized by its low percentage of renters and substantial median income levels. With a total population of 6,244, only 2.6% of residents are renters, indicating a predominantly owner-occupied community. The median household income in this area is exceptionally high at $250,001, placing it well above the national average. This economic strength is further reflected in the median home value, which stands at an impressive $1,561,128. Such figures suggest a community where homeowners have significant equity and disposable income.
When it comes to rental economics, the Federal Market Rent (FMR) for ZIP 10506 in fiscal year 2024 is set at $3,530. In contrast, the Census Bureau's American Community Survey (ACS) reports the average market rent in the area to be approximately $2,600. This disparity between FMR and market rent could present opportunities for landlords and investors, particularly those involved with Section 8 housing vouchers. The higher FMR means that landlords participating in the Section 8 program can potentially receive higher payments compared to the local market rates, which can be beneficial for maintaining property values and covering operational costs.
Given these factors, ZIP 10506 appears to be more suited for a hands-off voucher operator rather than a hands-on value-add buyer. The low percentage of renters and the high median income indicate that the demand for subsidized housing may be limited, making it less attractive for investors looking to actively manage properties and add value through renovations or other improvements. Instead, for those interested in the stability and guaranteed income provided by Section 8 vouchers, this ZIP code offers a solid investment opportunity, especially considering the favorable difference between FMR and market rent.
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.