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 | $3,460 |
| 1 Bedroom | $3,640 |
| 2 Bedrooms | $3,960 |
| 3 Bedrooms | $5,010 |
| 4 Bedrooms | $5,490 |
| 5 Bedrooms | $6,368 |
| 6 Bedrooms | $7,132 |
| 7 Bedrooms | $7,703 |
| 8 Bedrooms | $8,088 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,960 | $595,548 | 0.66% | D |
| 3BR | $5,010 | $704,280 | 0.71% | D |
| 4BR | $5,490 | $1,094,987 | 0.5% | F |
| 5BR | $6,368 | $2,001,816 | 0.32% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 10524, which covers Garrison, NY in Putnam County, can be dissected into several key components to provide landlords with a clear understanding of the financial implications. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $2,720. This figure represents the maximum amount that a housing voucher can cover for rent.
In contrast, the local market rent for a similar unit, according to the Census American Community Survey (ACS), stands at $2,457. This indicates that the SAFMR is higher than the actual market rent, which could benefit landlords participating in the program.
A voucher payment under Section 8 consists of two main parts: the tenant's contribution and the government subsidy. The tenant is required to pay 30% of their adjusted income toward rent. If we assume an average adjusted income of $2,000 for a household in this area, the tenant would contribute approximately $600 towards rent.
Beyond the rent, there are utility allowances that vary but typically range around $300 to $400 per month. These allowances are additional funds provided to the tenant to help cover utilities, and they do not directly affect the landlord's reimbursement.
To calculate the typical reimbursement for a landlord, subtract the tenant's contribution from the SAFMR. In this case, the reimbursement would be $2,720 - $600 = $2,120. However, this calculation assumes the SAFMR is fully utilized, which might not always be the case due to individual tenant circumstances.
Given the local market rent of $2,457, a landlord would receive a reimbursement of $2,120 under the best-case scenario. This leaves a reimbursement gap of $337 per month, meaning landlords would need to adjust their expectations or find other ways to make up for this shortfall.
In summary, while the SAFMR in ZIP 10524 is designed to support affordable housing, it does not fully cover the market rent for a two-bedroom unit. Landlords should anticipate a reimbursement gap of $337 per month when considering participation in the Section 8 program for this specific ZIP code.
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.