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 | $2,570 |
| 1 Bedroom | $2,700 |
| 2 Bedrooms | $2,940 |
| 3 Bedrooms | $3,720 |
| 4 Bedrooms | $4,080 |
| 5 Bedrooms | $4,733 |
| 6 Bedrooms | $5,301 |
| 7 Bedrooms | $5,725 |
| 8 Bedrooms | $6,011 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,700 | $280,671 | 0.96% | C |
| 2BR | $2,940 | $392,329 | 0.75% | D |
| 3BR | $3,720 | $687,028 | 0.54% | F |
| 4BR | $4,080 | $907,116 | 0.45% | F |
| 5BR | $4,733 | $1,119,422 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 10970, located in Pomona, NY, presents an interesting balance between yield and stability for real estate investors. The Fair Market Rent (FMR) for FY 2024 is set at $2,520, which is significantly higher than the current market rent of $1,950. This discrepancy suggests a potential for higher rental yields if properties can be leased at or near the FMR. However, the median home value of $719,758 indicates that the initial investment required to enter this market is substantial.
On the stability front, the ZIP code has a relatively low percentage of renters at 20.6%. While this figure might suggest less demand for rentals, the average household income of $120,186 provides a strong financial foundation for tenants, likely leading to lower vacancy rates and fewer defaults. Unfortunately, the number of days on the market (DOM) is not available, which would have helped assess the ease of finding tenants.
Evaluating these factors, ZIP 10970 leans towards being a steady-cashflow zone. The high median home value and strong income levels support a stable tenant base. Although the rental yield is potentially high due to the gap between FMR and market rents, the low percentage of renters could indicate a smaller pool of potential tenants, thus slightly reducing the stability aspect. Nonetheless, the financial strength of the area's residents mitigates this risk, making it a suitable option for investors seeking reliable long-term returns rather than quick flips.
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.