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 | $2,730 |
| 1 Bedroom | $2,880 |
| 2 Bedrooms | $3,130 |
| 3 Bedrooms | $3,960 |
| 4 Bedrooms | $4,340 |
| 5 Bedrooms | $5,034 |
| 6 Bedrooms | $5,638 |
| 7 Bedrooms | $6,089 |
| 8 Bedrooms | $6,393 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,960 | $1,087,521 | 0.36% | F |
| 4BR | $4,340 | $1,332,796 | 0.33% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 10709 reveals a significant gap between the Fair Market Rent (FMR) set by the government at $2600 and the actual market rent reported by the Census Bureau at $2,093 for fiscal year 2024. This gap amounts to $507, which represents an increase of approximately 24% over the market rent.
This discrepancy makes ZIP 10709 an attractive location for landlords and small-portfolio investors who are willing to participate in the Section 8 program. The higher FMR means that voucher tenants can afford to pay rents closer to the $2600 benchmark, thereby offering a better yield compared to the open-market average of $2,093. In essence, landlords can potentially charge more for their units under the Section 8 program without significantly exceeding the local market rates.
However, accepting Section 8 tenants comes with its own set of considerations. Despite the higher rent payments, landlords must ensure compliance with HUD standards, which can involve additional costs and maintenance requirements. Given that only 19.9% of residents in 10709 are renters, and the median home value stands at $982,558, it's clear that homeownership is prevalent in this area. The median income of $170,417 suggests that many residents can afford to live outside the rental market, further emphasizing the importance of Section 8 for those who remain in the rental sector.
Investors should weigh the benefits of increased rental income against the potential administrative burdens and property management challenges associated with the Section 8 program. For those who can navigate these complexities effectively, the gap between FMR and market rent presents a tangible opportunity to enhance investment yields in ZIP 10709.
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.