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 | $2,420 |
| 1 Bedroom | $2,540 |
| 2 Bedrooms | $2,770 |
| 3 Bedrooms | $3,510 |
| 4 Bedrooms | $3,840 |
| 5 Bedrooms | $4,454 |
| 6 Bedrooms | $4,988 |
| 7 Bedrooms | $5,387 |
| 8 Bedrooms | $5,656 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,510 | $773,390 | 0.45% | F |
| 4BR | $3,840 | $940,374 | 0.41% | F |
| 5BR | $4,454 | $1,047,388 | 0.43% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 10552 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2200, while the market rent, as measured by ZORI, stands at $2,676. This means there is a difference of $476 per month, or approximately 21.6%, between what the government considers fair and the open-market rates.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must consider the cost implications of accepting housing vouchers. The discrepancy suggests that voucher tenants will pay less than what the property could fetch in the open market. However, the decision to participate in the Section 8 program should be anchored in broader economic context: ZIP 10552 has a rental population making up 35.3% of all residents, a median home value of $534,687, and a median household income of $96,717.
Accepting Section 8 tenants can still be a strategic move despite the lower rents. It ensures a stable occupancy rate, which is crucial for cash flow management. Additionally, the area's relatively high median home values and incomes indicate a robust local economy that can support various types of housing needs, including subsidized housing. While the immediate yield might appear lower due to the $476 monthly shortfall, the long-term benefits of guaranteed tenancy and reduced vacancy costs can outweigh the initial financial gap.
To illustrate, let's break down the numbers:
This analysis shows that while the FMR is below market rates, the potential for steady tenancy and the economic stability of ZIP 10552 make it a viable option for landlords and investors looking to balance risk and reward in their real estate portfolios.
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.