Section 8 Fair Market Rent (FMR) for ZIP 10587 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 10587, located in New York County, NY, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this area is set at $2350. This figure represents the maximum amount that the federal government will pay toward the rental costs for a tenant who is using a Section 8 Housing Choice Voucher.

A voucher holder is typically responsible for paying 30% of their adjusted income toward rent. In addition to the base rent, there are utility allowances that can vary but are generally capped at a certain amount per month. For instance, if the utility allowance is $300, then the total reimbursement a landlord might receive could be slightly above the base SAFMR, depending on the tenant's contribution and the specific utility allowance applied.

To walk through an example, let's assume a tenant has an adjusted monthly income of $1500. Thirty percent of this income would be $450, which the tenant must contribute toward the rent. If the utility allowance is $300, then the total reimbursement for a landlord would be the tenant's contribution ($450) plus the utility allowance ($300), plus the remainder up to the SAFMR of $2350. Therefore, the landlord would receive the full $2350 if the tenant's share plus utilities equals or exceeds this amount.

However, since the local market rent for 2BR apartments in ZIP 10587 is not available, it is challenging to provide a precise surplus or shortfall. But based on the SAFMR, landlords should expect that the reimbursement will cover a significant portion of the market rent, especially considering the high average rents in New York City. To determine the exact gap or surplus, landlords would need to compare the $2350 SAFMR with the actual market rent they charge for similar units.

In conclusion, while the SAFMR provides a benchmark for reimbursement, the actual financial impact on a landlord depends on the specific market conditions and the individual tenant's income and utility usage. Landlords in ZIP 10587 should carefully consider these factors when deciding whether to participate in the Section 8 program.

Data Sources: FMR data from HUD (2027).

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.