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 | $3,070 |
| 1 Bedroom | $3,230 |
| 2 Bedrooms | $3,520 |
| 3 Bedrooms | $4,450 |
| 4 Bedrooms | $4,880 |
| 5 Bedrooms | $5,661 |
| 6 Bedrooms | $6,340 |
| 7 Bedrooms | $6,847 |
| 8 Bedrooms | $7,189 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,520 | $561,896 | 0.63% | D |
| 3BR | $4,450 | $679,360 | 0.66% | D |
| 4BR | $4,880 | $847,091 | 0.58% | F |
| 5BR | $5,661 | $944,979 | 0.6% | F |
U.S. Census Bureau data (2024)
The real estate market in Tappan, NY (ZIP 10983) is currently characterized by a median home value of $728,376. This figure, alongside the absence of percentage reductions in listings and an unspecified median days on market (DOM), suggests that the local housing market is stable and maintains strong seller pricing power. The lack of reductions in listing prices indicates that homes are generally selling at or near their asking price, a trend likely to persist over the next 12-24 months given the current data.
On the rental side, the Fair Market Rent (FMR) for ZIP 10983 in fiscal year 2024 is set at $3820, while the actual market rent stands at $2,299 according to Census ACS data. This significant gap between FMR and market rent signals a robust demand for rental properties, especially among those eligible for housing assistance programs. Landlords can leverage this demand to potentially increase rental income, though they should be cautious to remain competitive with market rates.
For long-hold investors, the setup in Tappan implies a realistic appreciation thesis based on the area's historical trends and current economic indicators. The combination of stable home values and strong rental demand supports the idea that property values will continue to rise, albeit at a moderate pace. Investors should expect steady growth rather than rapid appreciation, making Tappan a solid choice for those seeking long-term, low-risk investments.
Moreover, the discrepancy between FMR and market rent presents opportunities for investors to consider multifamily or single-family rental properties. These assets can benefit from the higher rents allowed under housing assistance programs, providing a reliable stream of income that can outpace inflation and support the overall investment strategy.
In summary, the median home value, coupled with the absence of price reductions and the strong rental market, points to a favorable environment for landlords and small-portfolio investors. The potential for steady appreciation and higher rental incomes makes Tappan an attractive location for those looking to build a sustainable real estate portfolio.
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.