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 | $2,870 |
| 1 Bedroom | $3,020 |
| 2 Bedrooms | $3,290 |
| 3 Bedrooms | $4,160 |
| 4 Bedrooms | $4,560 |
| 5 Bedrooms | $5,290 |
| 6 Bedrooms | $5,925 |
| 7 Bedrooms | $6,399 |
| 8 Bedrooms | $6,719 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,290 | $490,812 | 0.67% | D |
| 3BR | $4,160 | $706,576 | 0.59% | F |
| 4BR | $4,560 | $852,120 | 0.54% | F |
| 5BR | $5,290 | $1,048,498 | 0.5% | F |
U.S. Census Bureau data (2024)
2940 is the Fair Market Rent (FMR) for ZIP code 10956, New City, NY, as of fiscal year 2024, setting the benchmark for rental pricing in the area. 2064 is the actual market rent reported by the Census Bureau's American Community Survey, indicating a gap between government standards and real-world costs. 791,522 is the median home value in this region, reflecting the substantial investment required to enter the housing market here. 6.7% is the share of renters in New City, suggesting a moderate demand for rental properties. 177,952 is the median household income, which is crucial for understanding the financial capacity of potential tenants. 32 days is the average Days on Market (DOM) for listings in this area, pointing to a relatively quick turnover rate for rental units. 0.2% is the percentage of listings that have had their prices cut, showing that the market is stable and sellers are not frequently lowering their prices.
The disparity between the $2,940 FMR and the $2,064 market rent highlights an opportunity for landlords to charge slightly above market rates while still being within HUD guidelines. The high median home value of $791,522 suggests that the area is desirable and can support higher rents. With only 6.7% of residents being renters, there is room for growth in the rental market, particularly for those who can afford the higher rents closer to the FMR. The median income of $177,952 provides assurance that tenants can meet higher rental payments, making it feasible for landlords to target the upper end of the rental spectrum. A DOM of 32 days indicates that the rental market is active, and listings are moving quickly, which is beneficial for landlords looking to fill vacancies. The minimal price-cut share of 0.2% underscores the stability of the real estate market in New City, where properties maintain their value without significant discounts.
Verdict: For Section 8 landlords and small-portfolio investors in ZIP 10956, the current market conditions favor properties priced at or near the FMR of $2,940, given the strong local economy and limited competition in the rental sector.
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.