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 | $3,130 |
| 1 Bedroom | $3,300 |
| 2 Bedrooms | $3,590 |
| 3 Bedrooms | $4,540 |
| 4 Bedrooms | $4,980 |
| 5 Bedrooms | $5,777 |
| 6 Bedrooms | $6,470 |
| 7 Bedrooms | $6,988 |
| 8 Bedrooms | $7,337 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,590 | $536,691 | 0.67% | D |
| 3BR | $4,540 | $1,000,796 | 0.45% | F |
| 4BR | $4,980 | $1,224,369 | 0.41% | F |
| 5BR | $5,777 | $1,466,463 | 0.39% | F |
U.S. Census Bureau data (2024)
The ZIP code 10605 is located in the heart of White Plains, New York, representing an affluent suburban neighborhood. With a total population of 19,493, it is characterized by a relatively low percentage of renters at 23.2%, indicating a predominantly owner-occupied area. The median household income in this region stands at a robust $148,982, reflecting the high economic status of its residents. Correspondingly, the median home value in ZIP 10605 is impressively high at $975,566, which places it among the most expensive residential areas in the county.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 10605 in fiscal year 2024 is set at $2,550. This figure represents the government's estimate of the average rent for a modest apartment in the area and is used to determine the payment standard for Section 8 vouchers. In stark contrast, the actual market rent, as measured by the Zillow Observed Rent Index (ZORI), is significantly higher at $3,181. This gap between the FMR and the ZORI suggests that landlords participating in the Section 8 program may face a shortfall when compared to the prevailing market rates.
Given these economic realities, ZIP 10605 may not be the ideal location for a hands-off Section 8 voucher operator. The disparity between the FMR and market rents could lead to financial challenges for landlords who rely solely on the voucher system. On the other hand, a hands-on value-add buyer might find opportunities to improve properties and increase their attractiveness to higher-income tenants, thereby potentially bridging the gap between the voucher amount and market rent. Such an approach would require active management and investment in property upgrades, but it could yield better returns and align more closely with the economic profile of the neighborhood.
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.