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 | $2,440 |
| 1 Bedroom | $2,570 |
| 2 Bedrooms | $2,800 |
| 3 Bedrooms | $3,540 |
| 4 Bedrooms | $3,880 |
| 5 Bedrooms | $4,501 |
| 6 Bedrooms | $5,041 |
| 7 Bedrooms | $5,444 |
| 8 Bedrooms | $5,716 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,800 | $611,305 | 0.46% | F |
| 3BR | $3,540 | $750,453 | 0.47% | F |
| 4BR | $3,880 | $948,196 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP 10516 (Cold Spring, NY) can be analyzed using the Fair Market Rent (FMR) and market rent figures provided. For a 2-bedroom unit, the annualized FMR for FY 2024 is $2710 multiplied by 12, equating to $32,520 per year. The median home value in the area is $706,590.
To determine the implied gross yield for the FMR scenario, divide the annualized rent by the median home value:
\( \frac{\$32,520}{\$706,590} = 0.046 \) or 4.6%.
The market rent for a 2-bedroom unit is $1,824 per month, which annualizes to $21,888. Using the same median home value, the implied gross yield for the market rent scenario is calculated as follows:
\( \frac{\$21,888}{\$706,590} = 0.031 \) or 3.1%.
Given these calculations, it's clear that the gross yield under the Section 8 FMR scenario is higher at 4.6%, compared to the market rent scenario at 3.1%. However, the reality of the situation must also take into account the local rental market dynamics, specifically the 25.7% renter density in Cold Spring, NY. This relatively low percentage suggests that the majority of homeowners are owner-occupiers, which could impact the demand for rental properties, including those participating in the Section 8 program.
The N/A-day Days on Market (DOM) figure indicates incomplete or unavailable data, which could mean that the market is either very stable or there is insufficient transactional activity to provide an accurate DOM average. In either case, this implies that rental property turnover might be slow, affecting the overall attractiveness of the investment.
In conclusion, while the Section 8 FMR scenario presents a more favorable gross yield, the lower renter density and potentially slow market turnover suggest that the market rent scenario is more reflective of the actual investment environment in ZIP 10516. Investors should consider these factors when evaluating potential returns and risks associated with rental properties in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.