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 | $2,720 |
| 1 Bedroom | $2,870 |
| 2 Bedrooms | $3,120 |
| 3 Bedrooms | $3,950 |
| 4 Bedrooms | $4,330 |
| 5 Bedrooms | $5,023 |
| 6 Bedrooms | $5,626 |
| 7 Bedrooms | $6,076 |
| 8 Bedrooms | $6,380 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,870 | $232,499 | 1.23% | A |
| 2BR | $3,120 | $393,093 | 0.79% | D |
| 3BR | $3,950 | $719,362 | 0.55% | F |
| 4BR | $4,330 | $817,634 | 0.53% | F |
| 5BR | $5,023 | $912,440 | 0.55% | F |
U.S. Census Bureau data (2024)
Yonkers, ZIP code 10701, serves as the dense urban core of Westchester County, characterized by a mix of pre-war walk-ups and active downtown revitalization. This neighborhood anchors the city’s government and cultural activity, with the sprawling Yonkers Public Schools district and Empire City Casino serving as major local employers. The area benefits from direct Hudson Line rail access to Manhattan, making it a practical commute hub, though investors should note the heavy municipal regulation typical of New York’s suburban-urban fringe.
Financially, the data presents a clear challenge for voucher holders. The FY2026 Fair Market Rent for a 2-bedroom unit is set at $2,970, yet the current market rent (Zillow ZORI) sits significantly lower at $2,689. This creates a negative gap of $281, meaning standard payment standards likely fall short of actual market pricing. The median home value in the area is $605,706, with properties sitting on the market for a median of 70 days. For investors, the entry price is substantial given the rental constraints.
Demand drivers are robust, as the ZIP code boasts a 73.3% renter share—the dominant housing tenure. However, the median household income is $64,776, which limits the ability of many residents to absorb rent increases above the FMR ceiling. While proximity to the Saw Mill River Parkway and local retail centers adds convenience for tenants, the income-to-rent ratio suggests that relying on voucher tenants to fill market-rate units may require rent concessions to stay within allowable limits.
The Section 8 verdict for 10701 leans toward stability and appreciation rather than immediate cash flow. With market rents lagging behind the projected FY2026 FMRs, investors cannot rely on voucher payments to cover full market rates without tenant contributions. The high renter share ensures consistent occupancy demand, but the $281 gap between market rent and FMR indicates that cash flow may be tight at current price points. This is a market best suited for long-term hold strategies banking on the $605,706 asset value rather than monthly rental premiums.
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.