Location: New York, NY | Metro: New York, NY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,050 |
| 1 Bedroom | $3,210 |
| 2 Bedrooms | $3,490 |
| 3 Bedrooms | $4,420 |
| 4 Bedrooms | $4,840 |
| 5 Bedrooms | $5,614 |
| 6 Bedrooms | $6,288 |
| 7 Bedrooms | $6,791 |
| 8 Bedrooms | $7,131 |
U.S. Census Bureau data (2024)
In evaluating whether to purchase properties in ZIP code 10526 for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $3,250 cover the debt service on a property valued at $702,219?
If your goal is to ensure that the FMR can cover the debt service, you must first calculate the expected monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment would be approximately $3,600. Given the FMR of $3,250, this clearly does not cover the debt service. Therefore, the answer is No. You cannot rely solely on the FMR to meet the debt obligations of such a property.
2) How does the market rent of $2,088 compare to the FMR?
The market rent of $2,088 is below the FMR of $3,250. This means that if you are considering renting to non-Section 8 tenants, you might struggle to achieve the higher FMR rent. However, for Section 8, the FMR is the ceiling for rental payments, so you will be receiving the higher amount. The comparison indicates that Section 8 rents are more favorable in this area compared to the general market.
3) Is there sufficient demand with 12.1% renters and N/A-day days on the market (DOM)?
The percentage of renters in ZIP 10526 is 12.1%. This figure alone does not provide a complete picture of demand. The absence of days on the market (DOM) data suggests that either the data is not available or that listings move quickly, which could indicate strong demand. However, without specific DOM data, it's challenging to assess the speed of property turnover.
If you can confirm that properties sell or lease quickly, then the demand is likely high enough to support Section 8 investments. In this case, the answer would be Yes. But if the DOM data were available and indicated long periods before leasing, the answer would be No.
If the DOM data is indeed missing and you cannot verify the leasing speed, then the decision would depend on other factors such as competition, local economic conditions, and the specific needs of the Section 8 program in your area. In this scenario, the answer is It Depends.
To summarize, the FMR of $3,250 does not sufficiently cover the debt service on a property valued at $702,219. The market rent being below the FMR makes Section 8 more attractive financially. However, the lack of DOM data complicates the assessment of demand, making the final decision dependent on additional research and analysis.
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.