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 | $2,570 |
| 1 Bedroom | $2,710 |
| 2 Bedrooms | $2,950 |
| 3 Bedrooms | $3,730 |
| 4 Bedrooms | $4,090 |
| 5 Bedrooms | $4,744 |
| 6 Bedrooms | $5,313 |
| 7 Bedrooms | $5,738 |
| 8 Bedrooms | $6,025 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,950 | $640,924 | 0.46% | F |
| 3BR | $3,730 | $860,136 | 0.43% | F |
| 4BR | $4,090 | $1,096,895 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 10520, located in Croton-on-Hudson, NY, within the New York, NY HUD Metro FMR Area, serves as a strong cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for this area in fiscal year 2024 is set at $2170, which is significantly lower than the market rent of $4000. This creates a spread of $1830 per unit, allowing landlords to benefit from higher-than-FMR rental income while still attracting tenants through the Section 8 program.
The median home value in ZIP 10520 stands at $811,444, indicating a relatively affluent neighborhood where property values are high. However, the FMR is designed to reflect affordable housing costs, making it possible for landlords to maintain a stable tenant base without compromising on cash flow. Given the high median income of $142,791, tenants are likely to have the financial stability to meet their portion of the rent, reducing the risk of default and ensuring steady cash flow.
While the ZIP code does not offer significant potential as an appreciation play due to its low price-cut share of 0.1%, the high median income suggests that the local economy is robust and can support steady rents over time. This makes it a reliable asset in terms of generating consistent revenue rather than capital gains.
ZIP 10520 also provides limited opportunities as a diversifier. With a renter share of 34.2%, it indicates a moderate level of rental activity, but the high median income and home values suggest that the majority of residents might be homeowners. Therefore, focusing on the cash-flow anchor aspect is more beneficial for landlords and small-portfolio investors looking to stabilize their income streams.
In summary, ZIP 10520 is best suited as a cash-flow anchor within a Section 8 portfolio strategy, given the substantial spread between the FMR and market rent, coupled with the financial stability of its residents. Landlords can leverage this to ensure a predictable and profitable income source from their properties in this area.
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.