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 | $2,370 |
| 1 Bedroom | $2,500 |
| 2 Bedrooms | $2,720 |
| 3 Bedrooms | $3,440 |
| 4 Bedrooms | $3,770 |
| 5 Bedrooms | $4,373 |
| 6 Bedrooms | $4,898 |
| 7 Bedrooms | $5,290 |
| 8 Bedrooms | $5,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,720 | $463,829 | 0.59% | F |
| 3BR | $3,440 | $603,206 | 0.57% | F |
| 4BR | $3,770 | $748,791 | 0.5% | F |
| 5BR | $4,373 | $975,775 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into Stony Point, NY (ZIP 10980), might have several concerns regarding the feasibility of investing in the area under Section 8 guidelines. Let's address these concerns with the available data.
Objection 1: Will FMR $2740 (zip FY 2024) cover the mortgage on a $641,200 home?
The Fair Market Rent (FMR) for ZIP 10980 in fiscal year 2024 is set at $2740. This figure represents the maximum amount that a landlord can charge for a Section 8 rental agreement. To determine if this will sufficiently cover a mortgage on a home priced at $641,200, we must consider the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly mortgage payment would be approximately $3175. Clearly, the FMR does not cover this mortgage cost, indicating that landlords should expect to subsidize the difference or seek alternative financing options to make Section 8 properties viable.
Objection 2: Is there enough renter demand at 13.4%?
The percentage of renters in ZIP 10980 stands at 13.4%. This relatively low figure suggests a smaller pool of potential tenants compared to areas with higher percentages. However, the demand for affordable housing can still be significant. According to recent data, the number of households eligible for Section 8 assistance has been increasing. Landlords should look into local community organizations and government programs that can help connect them with eligible renters. Additionally, the proximity to larger urban centers can attract renters who work in those cities but prefer a quieter suburban lifestyle.
Objection 3: Will vouchers keep pace with $1,780 market rents?
The average market rent in Stony Point, NY, is reported to be around $1,780. The Section 8 voucher program aims to cover a substantial portion of this rent, but it's important to note that the actual voucher amount is determined by a formula that takes into account the local Fair Market Rent and the household size. If the FMR is $2740, it implies that the voucher could potentially cover up to $2740, which exceeds the average market rent. However, the exact amount a tenant receives depends on their income level and family size. It's also crucial to monitor any changes in the voucher program or local economic conditions that could affect renter affordability and demand.
In conclusion, while the FMR may not fully cover the mortgage on a high-priced property, the voucher system can provide a significant subsidy. The lower renter demand percentage highlights the need for proactive tenant acquisition strategies. Lastly, the potential mismatch between market rents and voucher amounts requires careful consideration of each tenant's situation. Investing in ZIP 10980 under Section 8 can be rewarding, but it demands a thorough understanding of the local market and tenant dynamics.
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.