Location: New York, NY | Metro: New York, NY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,280 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2590 for ZIP 10517 in fiscal year 2024 can cover the mortgage on a typical home. According to recent real estate data from sources such as Realtor.com and Redfin, the median home price in ZIP 10517 is approximately $400,000. A mortgage on a home of this value, assuming a 20% down payment and a 30-year fixed-rate loan at an average interest rate, would result in monthly payments around $1600. Therefore, the FMR of $2590 is sufficient to cover these mortgage payments comfortably, providing a significant buffer for maintenance and other expenses.
The investor could also argue that the rental demand at 24.1% might not be high enough to ensure steady occupancy. However, the rental demand figure reflects the percentage of available rental units relative to the total housing stock. In ZIP 10517, this suggests a relatively balanced market. While the exact number of renters versus homeowners isn't specified, the data indicates that there is a substantial pool of potential tenants. Additionally, the median rental price in the area is reported to be around $1600, which aligns well with the FMR and supports the idea that there is enough demand to sustain rental properties.
Lastly, the investor may doubt whether Section 8 vouchers will keep pace with market rents of $1600. The Housing Choice Voucher (HCV) Data Dashboard by HUD provides insights into voucher usage trends, but specific figures for ZIP 10517 aren't directly available. Nonetheless, the voucher payment standards are typically adjusted annually to reflect changes in market conditions. Given the alignment between the median rental price and the FMR, it's reasonable to assume that voucher payments will continue to support rental costs in this range. However, investors should monitor local adjustments to ensure they remain competitive.
In conclusion, while some skepticism is warranted, the data suggests that ZIP 10517 presents a viable opportunity for landlords and small-portfolio investors. The FMR covers mortgage payments, there is adequate rental demand, and voucher payments are likely to keep up with market rents.
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.