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 | $3,220 |
| 1 Bedroom | $3,390 |
| 2 Bedrooms | $3,690 |
| 3 Bedrooms | $4,670 |
| 4 Bedrooms | $5,120 |
| 5 Bedrooms | $5,939 |
| 6 Bedrooms | $6,652 |
| 7 Bedrooms | $7,184 |
| 8 Bedrooms | $7,543 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,690 | $526,879 | 0.7% | D |
| 3BR | $4,670 | $718,187 | 0.65% | D |
| 4BR | $5,120 | $884,489 | 0.58% | F |
| 5BR | $5,939 | $966,184 | 0.61% | D |
U.S. Census Bureau data (2024)
The ZIP code 10598, located in Yorktown Heights, NY, presents an interesting scenario when viewed from the renter's perspective. The median household income in this area stands at $173,573, which places it in a relatively high-income bracket. However, the market rate for rent, according to Census ACS data, is $2,233 per month. This figure represents a significant portion of the average household's monthly income, making it challenging for many residents to afford market-rate housing.
When comparing the market rate to the Fair Market Rent (FMR) standard set by HUD for fiscal year 2024, which is $2,500 for this zip code, it becomes evident that there is a substantial affordability gap. The FMR is intended to reflect the rental market rates in an area, and while it is slightly higher than the actual market rate, it still indicates that renting in Yorktown Heights is costly.
In ZIP 10598, only 11.4% of the 28,821 population are renters, suggesting a smaller pool of potential tenants compared to areas with higher percentages of renters. This means that landlords face a competitive environment where attracting and retaining tenants can be difficult due to the limited number of people looking to rent.
The takeaway for landlords considering their strategy on whether to accept vouchers versus cash-paying tenants is clear. While the median income supports the ability to pay market rates, the actual percentage of renters is low, indicating a need to diversify tenant acquisition methods. Accepting vouchers can help fill vacancies and tap into a different segment of the market, but it comes with the trade-off of receiving a lower payment amount, typically around 70-80% of the FMR. For landlords, the decision should balance the immediate financial benefit of cash-paying tenants against the strategic advantage of securing long-term occupancy through voucher programs.
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.