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 | $2,890 |
| 1 Bedroom | $3,010 |
| 2 Bedrooms | $3,330 |
| 3 Bedrooms | $4,150 |
| 4 Bedrooms | $4,490 |
| 5 Bedrooms | $5,208 |
| 6 Bedrooms | $5,833 |
| 7 Bedrooms | $6,300 |
| 8 Bedrooms | $6,615 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,150 | $822,764 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 10532 reveals an interesting dynamic between federal market rent (FMR) and market rent. For a two-bedroom property, the annualized FMR for FY 2024 is set at $2870, while the Census ACS reports the market rent at $2,885. Given a median home value of $783,542, we can calculate the implied gross yield for both scenarios.
First, using the FMR of $2870, the annual rental income would be $34,440 ($2870 x 12 months). This translates into an implied gross yield of approximately 4.4% when compared to the median home value. The formula used here is simple: gross yield = (annual rental income / median home value) * 100%. Thus, 4.4% = ($34,440 / $783,542) * 100%.
Second, applying the market rent of $2,885, the annual rental income would be $34,620 ($2,885 x 12 months), leading to an implied gross yield of about 4.42%. The calculation follows the same logic: gross yield = ($34,620 / $783,542) * 100%, resulting in 4.42%.
The difference between these yields is negligible, with the market rent scenario providing a slightly higher return. However, considering the 10.5% renter density in ZIP 10532, the FMR scenario appears more realistic. A lower renter density suggests that fewer properties are rented out, making it challenging for landlords to maintain a steady stream of tenants. Additionally, the N/A-day DOM (days on market) indicates that there might be inefficiencies or irregularities in the rental market, further supporting the use of FMR as a more reliable benchmark for gross yield calculations.
In conclusion, while the market rent offers a marginally better gross yield, the FMR provides a more stable and predictable income stream, aligning with the current rental market conditions in ZIP 10532. Landlords and small-portfolio investors should consider these factors when evaluating potential investments under the Section 8 program.
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.