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 | $2,890 |
| 1 Bedroom | $3,040 |
| 2 Bedrooms | $3,310 |
| 3 Bedrooms | $4,190 |
| 4 Bedrooms | $4,590 |
| 5 Bedrooms | $5,324 |
| 6 Bedrooms | $5,963 |
| 7 Bedrooms | $6,440 |
| 8 Bedrooms | $6,762 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,040 | $253,056 | 1.2% | A |
| 2BR | $3,310 | $418,625 | 0.79% | D |
| 3BR | $4,190 | $999,278 | 0.42% | F |
| 4BR | $4,590 | $1,571,593 | 0.29% | F |
| 5BR | $5,324 | $2,693,300 | 0.2% | F |
U.S. Census Bureau data (2024)
In Yonkers, NY (ZIP 10708), the real estate market presents a unique set of dynamics that influence both pricing power and investment potential for landlords and small-portfolio investors. The median home value stands at $949,632, indicating a robust housing market where property values have reached significant heights. This high median value is coupled with only a 0.1% reduction in listing prices, suggesting that sellers maintain strong pricing power and confidence in the market's ability to support current price levels.
The median days on market (DOM) for properties in this area is 29 days. This relatively short DOM period signals a brisk sales pace, which further reinforces the notion that the market is tight and buyers are willing to pay asking prices quickly. The combination of a high median home value, minimal price reductions, and a quick sale cycle points towards a seller's market that is likely to persist over the next 12-24 months. Landlords and investors can leverage this scenario to potentially raise rents or sell properties at favorable rates.
On the rental side, the Fair Market Rent (FMR) for ZIP 10708 in fiscal year 2024 is projected at $2,510. In contrast, the current market rent, as indicated by ZORI, is $2,924. This gap suggests that rental prices are above fair market levels, providing an opportunity for landlords to adjust their rental rates closer to the FMR without losing tenants. However, it also indicates a potential risk if market conditions change, leading to a decrease in demand for higher-priced rentals.
For long-term investors, the appreciation thesis in Yonkers is grounded in the expectation that the high median home value and strong seller's market will continue to support steady growth in property values. The limited price reductions and quick sales cycles imply a resilient market capable of absorbing increases in property values. Additionally, the current rental market dynamics, with rents exceeding FMR, provide a cushion for maintaining profitability even if property appreciation slows.
However, the setup also highlights a need for caution. If the rental market begins to shift towards a more balanced state, with market rents converging towards FMR, this could affect the overall attractiveness of the area for both buyers and renters. Investors should monitor local economic indicators, such as job growth and migration trends, to gauge the sustainability of current market conditions.
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.