Location: New York, NY | Metro: New York, NY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,350 |
| 1 Bedroom | $2,470 |
| 2 Bedrooms | $2,690 |
| 3 Bedrooms | $3,400 |
| 4 Bedrooms | $3,730 |
| 5 Bedrooms | $4,327 |
| 6 Bedrooms | $4,846 |
| 7 Bedrooms | $5,234 |
| 8 Bedrooms | $5,496 |
U.S. Census Bureau data (2024)
In ZIP code 10596, there are several risks to consider for landlords and small-portfolio investors looking into Section 8 investments. Tenant turnover is a significant issue, especially when comparing the market rent of $1,850 to the Fair Market Rent (FMR) of $2,340 for FY 2024. The lower market rent can attract tenants who may be less financially stable, leading to higher turnover rates.
Vacancy exposure is another concern. With no data available on the days on market (DOM), it's difficult to predict how long a property might remain vacant between tenants. This uncertainty can lead to financial strain, as vacancy periods mean lost rental income.
The deferred maintenance exposure is also noteworthy. Given the typical home value of $504,841 and a median income of $98,091, many tenants may struggle to cover maintenance costs, potentially leaving landlords responsible for repairs and upkeep. This can be particularly challenging if the property requires substantial work, as the cost can quickly outweigh the benefits of renting to Section 8 tenants.
However, these risks must be weighed against the high renter share of 32.9%. High renter density often translates to increased demand for housing vouchers, which can provide a steady stream of tenants willing to pay the subsidized rate. While the initial risk factors are present, the strong demand for rental properties in the area can mitigate some of the financial uncertainties associated with tenant turnover and vacancy exposure.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.