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 | $3,140 |
| 1 Bedroom | $3,310 |
| 2 Bedrooms | $3,600 |
| 3 Bedrooms | $4,560 |
| 4 Bedrooms | $4,990 |
| 5 Bedrooms | $5,788 |
| 6 Bedrooms | $6,483 |
| 7 Bedrooms | $7,002 |
| 8 Bedrooms | $7,352 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,310 | $626,144 | 0.53% | F |
| 2BR | $3,600 | $825,332 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 11103 in New York, NY, reveals a stark contrast between the federal market rent (FMR) and the actual market rent, known as the Zillow Observed Rent Index (ZORI).
For a two-bedroom unit, the annualized FMR for fiscal year 2024 is set at $3170. This translates to a gross yield of approximately 0.3% when compared to the median home value of $1,066,186. In stark contrast, the ZORI for a two-bedroom unit is $2,706, resulting in an even lower gross yield of around 0.25%.
Given the high renter density of 83.8%, it's important to consider how these figures impact the investment landscape. The N/A-day DOM (days on market) suggests that units are either rented quickly or there is limited turnover data available, which could imply strong demand for rental properties in this area.
While the FMR provides a theoretical maximum rental income under Section 8, the actual market conditions suggest that landlords might face challenges in achieving this rate. The disparity between the FMR and ZORI indicates that the market-driven gross yield is significantly lower than what the government program theoretically offers. Therefore, for small-portfolio investors and landlords, the ZORI scenario is more realistic for projecting potential returns.
In conclusion, while the FMR presents a higher gross yield, the practical considerations of the local real estate market, especially the strong renter base, point towards the ZORI as the more reliable indicator for investment decisions. Investors should focus on the ZORI figure to accurately assess their potential gross yields and overall investment performance in ZIP 11103.
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.