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 | $2,850 |
| 1 Bedroom | $3,000 |
| 2 Bedrooms | $3,270 |
| 3 Bedrooms | $4,140 |
| 4 Bedrooms | $4,540 |
| 5 Bedrooms | $5,266 |
| 6 Bedrooms | $5,898 |
| 7 Bedrooms | $6,370 |
| 8 Bedrooms | $6,689 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,000 | $324,555 | 0.92% | C |
| 2BR | $3,270 | $426,862 | 0.77% | D |
| 3BR | $4,140 | $678,001 | 0.61% | D |
| 4BR | $4,540 | $799,542 | 0.57% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 10989 in Valley Cottage, NY, under the Section 8 program are significant. Tenant turnover is a critical issue, with the market rent at $2,065 falling well below the Federal Market Rent (FMR) of $3,650 for FY 2024. This discrepancy can lead to difficulties in attracting tenants willing to pay the higher FMR rate, resulting in frequent turnover and associated costs.
Vacancy exposure is another concern. The Days on Market (DOM) figure is currently unavailable, which suggests that there might be challenges in predicting how long it will take to lease a property. High DOM periods can exacerbate financial pressures on landlords, especially when coupled with lower market rents.
Deferred maintenance is also a risk factor. With a typical home value of $636,323 and a median income of $134,267, homeowners may struggle to keep up with necessary repairs and improvements, particularly if they are relying on Section 8 payments. These payments may not cover the full cost of maintaining a property at its required standard.
However, these risks must be weighed against the high renter density in the area, with 10.6% of residents being renters. This indicates a strong likelihood of demand for rental properties, including those participating in the Section 8 program. High renter density often translates into greater demand for affordable housing options, which can stabilize occupancy rates over time.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 10989 is moderate.
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.