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 | $3,090 |
| 1 Bedroom | $3,250 |
| 2 Bedrooms | $3,540 |
| 3 Bedrooms | $4,480 |
| 4 Bedrooms | $4,910 |
| 5 Bedrooms | $5,696 |
| 6 Bedrooms | $6,380 |
| 7 Bedrooms | $6,890 |
| 8 Bedrooms | $7,235 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,540 | $697,658 | 0.51% | F |
| 3BR | $4,480 | $1,126,849 | 0.4% | F |
| 4BR | $4,910 | $1,591,994 | 0.31% | F |
| 5BR | $5,696 | $2,258,149 | 0.25% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 10803, located in Pelham, NY, within the New York, NY HUD Metro FMR Area, does not align favorably for landlords participating in Section 8 programs. The Fair Market Rent (FMR) set at $2,610 for fiscal year 2024 is notably higher than the actual market rent, which stands at $2,298 as indicated by ZORI (Zillow Observed Rent Index). This discrepancy means that landlords can expect to receive slightly above average rental income when participating in the Section 8 program.
Regarding the affordability of acquisitions, the median home value in ZIP 10803 is $1,367,657. With no data available on days on market (DOM) and a negligible 0.1% price-cut share, it appears that the market is stable and homes are likely to retain their value. However, the high median home value suggests that acquiring properties in this area will be costly, making it less attractive for those seeking affordable investment opportunities.
Tenant demand is moderate in ZIP 10803. With a total population of 13,072, the renter share is 21.0%, indicating a decent pool of potential tenants. However, the relatively low percentage of renters compared to homeowners could mean competition among landlords for a limited number of Section 8 eligible tenants.
Verdict: While the higher FMR compared to the market rent offers a slight advantage for landlords participating in the Section 8 program, the high median home value makes property acquisition expensive. Despite a moderate tenant demand, the stability of the housing market and the competition for a smaller pool of renters suggest that Pelham, NY, may not be the most optimal location for small-portfolio investors looking to maximize returns or minimize risk. For larger portfolios with a strategic focus on maintaining occupancy rates, Pelham could still be considered, but it's crucial to carefully evaluate the financials and local rental market dynamics before investing.
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.