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 | $3,370 |
| 1 Bedroom | $3,550 |
| 2 Bedrooms | $3,860 |
| 3 Bedrooms | $4,880 |
| 4 Bedrooms | $5,350 |
| 5 Bedrooms | $6,206 |
| 6 Bedrooms | $6,951 |
| 7 Bedrooms | $7,507 |
| 8 Bedrooms | $7,882 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,860 | $521,621 | 0.74% | D |
| 3BR | $4,880 | $1,231,109 | 0.4% | F |
| 4BR | $5,350 | $1,747,519 | 0.31% | F |
| 5BR | $6,206 | $2,803,579 | 0.22% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 10583, Scarsdale, NY, for fiscal year 2024 is set at $2880. This figure represents the payment standard for Section 8 housing vouchers, which is the amount the government will pay towards your tenant's rent. It does not reflect the total rent you can charge; rather, it caps the portion subsidized by the voucher program.
In comparison, the local market rent, known as the Zillow Observed Rent Index (ZORI), stands at $5,610. This means that the FMR is significantly lower than what you might typically charge for a rental property in this area. However, the FMR is designed to be a benchmark for affordability, especially for low-income tenants who benefit from the Section 8 program.
The demand for Section 8 rentals in Scarsdale is indicated by the renter share, which is 15.2%. This suggests that a little over 15% of the population in Scarsdale are potential renters who could be eligible for the Section 8 program. Given the high local rents, this percentage represents a niche but steady demand for affordable housing options.
If you're considering acquiring a property for a Section 8 rental, the average cost for a home in this ZIP code is $1,499,872. This figure is important when evaluating the financial feasibility of using a property for Section 8 tenancy. While the acquisition cost is high, the long-term stability of Section 8 payments and the reduced risk of vacancy can make it an attractive option for certain investors.
Before making a decision, verify that the property meets all the necessary requirements for the Section 8 program. This includes ensuring that the unit passes inspection standards for health and safety, and that the rent you propose is reasonable compared to the FMR. Once these criteria are met, the Section 8 program can provide a reliable source of income and help address the need for affordable housing in Scarsdale.
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.