Location: New York, NY | Metro: New York, NY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,120 |
| 1 Bedroom | $3,280 |
| 2 Bedrooms | $3,570 |
| 3 Bedrooms | $4,520 |
| 4 Bedrooms | $4,950 |
| 5 Bedrooms | $5,742 |
| 6 Bedrooms | $6,431 |
| 7 Bedrooms | $6,945 |
| 8 Bedrooms | $7,292 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 10530 (Hartsdale, NY) reveals two distinct scenarios based on the Federal Market Rent (FMR) and the market rent figures. For a 2-bedroom unit, the annualized FMR for FY 2024 is $2800, while the Census ACS reports the market rent at $2,396.
To calculate the gross yield, we first consider the FMR scenario. With an annual rent of $2800, the implied gross yield is approximately 0.39%. This is calculated by taking the annual rent ($2800) and dividing it by the median home value ($717,699), then multiplying by 100 to convert it into a percentage. The formula used is: (Annual Rent / Median Home Value) * 100 = Gross Yield.
Moving to the market rent scenario, the annualized rent of $2,396 implies a gross yield of roughly 0.33%. Using the same formula, we divide the annual market rent by the median home value and multiply by 100 to get the percentage.
Given the 14.4% renter density and a 38-day Days on Market (DOM), the market rent scenario appears more realistic. The lower renter density suggests that the majority of properties are owner-occupied, reducing the pool of potential rental income. Additionally, a 38-day DOM indicates that properties are typically occupied relatively quickly, which supports a scenario where landlords might prefer market rents over Section 8 rates to maximize their income.
The difference between the FMR and market rent yields is minimal, at just 0.06%, but this can be significant when considering the overall investment strategy. Investors should weigh the benefits of guaranteed Section 8 tenancy against the higher market rent yields, keeping in mind the local rental market conditions and the specific needs of their portfolio.
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.