Are Two- and Three-Family Homes on Staten Island Still Good Investments at 7% Mortgage Rates?

Nov 5, 2026

They can still work, but the margin is thinner. Two- and three-family homes on Staten Island typically sell for $600,000 to $900,000, and rent can offset part of the payment. At 7.28%, rent has to cover a much larger mortgage payment than it did a year ago, so run the numbers on the actual property.

Why do investors look at Staten Island multi-family homes?

Local brokers point to two reasons. First, entry prices for two- and three-family homes in the South Shore and Mid-Island corridors typically run from $600,000 to $900,000, which one brokerage says offers cash-flow potential that is hard to match in Brooklyn or Manhattan (Prodigy RE). Second, a March report said two-family buyers were targeting the North Shore and parts of Mid-Island, where rental income helps cover carrying costs (DeFalco Realty). Those are brokerage views, not guarantees.

What does the math look like at today's rates?

Here is a simple example, not a forecast. Assume a $750,000 two-family home, 20% down, and a $600,000 loan at 7.28%. Principal and interest is about $4,105 a month. Add about $700 for property taxes, the median-home figure from one broker, though a two-family home may be taxed higher.

The $2,850 figure is a borough-wide median rent from one broker's data, so real rents on a specific unit can differ. Insurance, repairs, vacancy, and any landlord costs come out of the leftover.

What is negative leverage?

If a property's income yield, called the cap rate, is lower than your mortgage rate, borrowing costs more than the property earns. With rates above 7%, many buildings don't clear that bar on income alone. Investors then rely on rent growth or price appreciation. Rents have tightened this year, but appreciation was flat to modest in the spring data.

What should I check before buying?

• Actual rents and lease terms for each unit, not borough medians.
• Property taxes, insurance, and the age of the roof, boiler, and plumbing.
• Whether the units are legal, and what your lender requires for owner-occupied versus investment loans.
• Your cash reserves for vacancies and repairs.

Frequently asked questions

How much do multi-family homes cost on Staten Island? Two- and three-family homes typically range from about $600,000 to $900,000, according to one local brokerage.

Can rent cover the mortgage? Sometimes. In our example, renting both units at the median rent covered the payment and taxes with a small surplus, while renting one unit did not.

Is it better to live in one unit? Owner-occupied loans often have smaller down payments and different rules than investment loans. Ask a lender which applies to you.

Do high rates make multi-family investing a bad idea? Not automatically, but they shrink cash flow. Run the numbers for the specific building and plan for vacancies.

Evaluating a two- or three-family home? Contact DiTommaso Real Estate at 718-667-8000 for a property-by-property review.