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 | $2,850 |
| 1 Bedroom | $2,990 |
| 2 Bedrooms | $3,260 |
| 3 Bedrooms | $4,130 |
| 4 Bedrooms | $4,520 |
| 5 Bedrooms | $5,243 |
| 6 Bedrooms | $5,872 |
| 7 Bedrooms | $6,342 |
| 8 Bedrooms | $6,659 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,130 | $878,964 | 0.47% | F |
| 4BR | $4,520 | $1,049,193 | 0.43% | F |
| 5BR | $5,243 | $2,280,675 | 0.23% | F |
U.S. Census Bureau data (2024)
The ZIP code 10604 is situated in the Upper West Side of Manhattan, New York City. This neighborhood is characterized by its dense urban setting, a mix of residential buildings including many apartment complexes, and a significant cultural presence with landmarks such as the American Museum of Natural History and Central Park nearby. The area has a total population of 12,517, with 51.1% of residents being renters, indicating a strong rental market. The median household income in this ZIP code stands at $117,014, reflecting a relatively affluent demographic. Correspondingly, the median home value is quite high at $918,310, underscoring the desirability and cost of living in the Upper West Side.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 10604 for the fiscal year 2024 is set at $2,780. In contrast, the market rent as measured by Zillow's ZORI index is significantly higher at $3,250. This disparity between the FMR and market rent suggests that landlords operating in this ZIP code could see a notable difference in their revenue if they were to rent properties outside of the Section 8 program.
Given these economic conditions, the Upper West Side might be more suited to a hands-on value-add buyer rather than a hands-off voucher operator. While the FMR provides a stable income source, the higher market rents indicate potential for greater returns through active property management and improvement initiatives. For those willing to engage in value-add strategies, there is an opportunity to capitalize on the premium rents commanded by this desirable location, thereby enhancing profitability beyond the baseline offered by the Section 8 program.
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.