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 | $2,280 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,290 |
| 4 Bedrooms | $3,610 |
| 5 Bedrooms | $4,188 |
| 6 Bedrooms | $4,691 |
| 7 Bedrooms | $5,066 |
| 8 Bedrooms | $5,319 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,290 | $879,865 | 0.37% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 10595 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $2600 per month for the fiscal year 2024. This SAFMR figure is specifically tailored for this ZIP code, reflecting local rental conditions more accurately than broader county-level rates.
Local market rents, however, according to the Census ACS, stand at $1,726 for a similar unit. This means that landlords participating in the Section 8 program can potentially charge up to $2600 for a two-bedroom rental, which is higher than the average market rate. However, it's important to note that the actual amount paid by the voucher is not simply the SAFMR; it's a combination of the tenant's contribution and the utility allowance.
The tenant's portion of the rent is typically based on their income, with the rule being that they pay 30% of their adjusted monthly income towards rent. If we assume an average household income that would result in a typical tenant contribution of around $400 to $500, the remainder would be covered by the voucher. Utility allowances vary but generally range from $200 to $300 per month, depending on the size of the unit and the region.
To illustrate, if a landlord sets the rent at $2600 for a two-bedroom apartment, and the tenant contributes $450, the voucher would cover the rest, minus the utility allowance. So, if the utility allowance is $250, the total reimbursement from the voucher would be $2600 - $450 - $250 = $1900. This leaves a reimbursement gap or surplus based on the market rent.
In ZIP 10595, where the local market rent is $1,726, the landlord would receive a surplus of approximately $174 per month ($1900 - $1726). This surplus is significant and can help offset some of the administrative burdens associated with the Section 8 program.
Landlords should also consider that the SAFMR does not guarantee occupancy, and there may be periods when the voucher payment exceeds the local market rent. In such cases, landlords must accept the lower rent or risk losing tenants who may find it more economical to move elsewhere. Overall, the economics of Section 8 in ZIP 10595 offer a stable income source with a slight surplus over the average market rent.
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.