Section 8 Fair Market Rent (FMR) for ZIP 10573 - 2027

Investment Score for ZIP 10573

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,790
1 Bedroom	$2,940
2 Bedrooms	$3,200
3 Bedrooms	$4,050
4 Bedrooms	$4,440
5 Bedrooms	$5,150
6 Bedrooms	$5,768
7 Bedrooms	$6,229
8 Bedrooms	$6,540

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,940	$326,539	0.9%	C
2BR	$3,200	$661,584	0.48%	F
3BR	$4,050	$901,191	0.45%	F
4BR	$4,440	$1,222,515	0.36%	F
5BR	$5,150	$1,720,164	0.3%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 10573 (Port Chester, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 10573 is set by HUD for 2026 as follows: - 0BR: $2750 - 1BR: $2890 - 2BR: $3170 (which represents 36.0% of the median household income) - 3BR: $3970 - 4BR: $4310 To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio. The Zillow median price for a 2BR property in Port Chester is $640,046, which translates into a rental value of approximately $3170 based on the price-to-FMR ratio of 16.8x. This means that the actual rent for a 2BR unit is likely close to the FMR, making it challenging for voucher holders to find units that do not exceed their maximum allowable rent. Constraints for voucher holders include finding landlords who accept Section 8 vouchers and ensuring that the rent does not exceed the FMR. Given that the occupancy rate is high at 96.7%, there is limited availability, which could further complicate the search for affordable housing. #### Affordability & Renter Profile With a population of 40,786, Port Chester has a significant portion of renters at 44.7%. The median household income is $105,686, indicating that the area is relatively affluent. However, the 2BR FMR of $3170 is only 36.0% of the median income, suggesting that many residents can afford higher rents. Given the high occupancy rate and the fact that the FMR for a 2BR unit is equivalent to the Zillow median rental value, it is clear that the market is tight. There is little room for oversupply, and competition for rental properties is likely fierce. This tight market condition makes it difficult for low-income families to find affordable housing, especially if they rely solely on Section 8 vouchers. #### Investor Angle For investors focusing on Section 8 properties, the cash flow potential needs to be evaluated against the FMR. Based on the FMR data, a 2BR unit should rent for $3170. However, given the high median home value and the tight market, the actual rental rates might be higher, potentially leading to better cash flow for investors who can secure tenants willing to pay above FMR. The investment grade for this ZIP code would be considered moderate due to the following factors: - High demand for rental properties - Limited supply of units that fall within the FMR range - Potential for higher rental rates due to the affluent nature of the area #### Specific Actionable Insights 1. **Focus on Units Below FMR:** Investors should focus on acquiring units that are priced below the FMR. For example, a 2BR unit priced at $2900 would be more attractive to voucher holders and provide a steady stream of income without exceeding the FMR cap. 2. **Consider Multi-Family Properties:** Given the high occupancy rate and the significant number of renters, multi-family properties could offer better returns. A 3BR or 4BR unit priced at $3970 or $4310, respectively, would still be within the FMR range but could cater to larger families or those willing to pay slightly more. 3. **Engage with Local Landlords:** Building relationships with local landlords who already accept Section 8 vouchers can help navigate the challenges of finding suitable tenants. This approach can also provide insights into the local rental market dynamics and tenant preferences. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 10573 is to **Hold**. While the market is tight and competition for rental properties is high, there is a significant number of renters who could benefit from affordable housing options. However, the challenge lies in finding units that are priced within the FMR range. Investors should carefully evaluate the potential for higher rental rates and consider engaging with local landlords to ensure a smoother transition into the market. In summary, the high occupancy rate and the affluent nature of the area make it a challenging yet potentially rewarding market for Section 8 investments. Careful selection of units below or near the FMR will be crucial for success.

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.