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 | $3,420 |
| 1 Bedroom | $3,600 |
| 2 Bedrooms | $3,940 |
| 3 Bedrooms | $4,930 |
| 4 Bedrooms | $5,360 |
| 5 Bedrooms | $6,218 |
| 6 Bedrooms | $6,964 |
| 7 Bedrooms | $7,521 |
| 8 Bedrooms | $7,897 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,600 | $485,307 | 0.74% | D |
| 2BR | $3,940 | $643,196 | 0.61% | D |
| 3BR | $4,930 | $783,875 | 0.63% | D |
| 4BR | $5,360 | $976,306 | 0.55% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 10589, located in the Somers, NY, New York, NY HUD Metro FMR Area, is favorable. The Fair Market Rent (FMR) set at $3,530 for fiscal year 2024 closely aligns with the market rent reported by the Census ACS at $3,501. This indicates that the rental income potential matches the government's benchmark, making it a stable investment for landlords.
Acquisition in this area is moderately priced but not particularly affordable. With a median home value of $669,550, purchasing property requires a significant capital outlay. However, the lack of available data on days on market (DOM) and the fact that only 0.1% of homes have been subject to price cuts suggest that once acquired, properties hold their value well and sell quickly when listed.
Tenant demand in ZIP 10589 is limited due to its relatively small population size of 7,604 and a low renter share of 8.6%. This means that while there are tenants, the pool is smaller compared to more densely populated areas, which could impact the speed and ease of finding suitable renters.
In conclusion, ZIP 10589 offers a solid rent-to-value proposition with rental incomes nearly matching the FMR. However, the acquisition cost is high, and the limited tenant base may pose challenges for rapid turnover and occupancy rates. Landlords and small-portfolio investors should weigh these factors carefully, considering their investment capacity and tolerance for lower occupancy rates against the stability of rental income and property value retention.
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.