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Rapid urban expansion has significantly altered land use patterns, resulting in a decrease in pervious surface areas and a disruption of hydrologic connectivity between surface water and groundwater systems. Combined with inadequate drainage systems and poorly managed runoff, these changes have intensified urban flooding, leading to fatalities and significant infrastructure damage in many rapidly growing and climate-vulnerable urban areas around the world. This study presents an integrated economic-hydrologic model to assess the effectiveness of Low Impact Development (LID) measures—specifically permeable pavement, infiltration trenches, bio-retention cells, and rain barrels—in mitigating flood damage in the Bronx river watershed, NYC. The Storm Water Management Model (SWMM) was employed to simulate flood events and assess the effectiveness of various LIDs, applied individually and in combination, in reducing peak discharge. Flood inundation maps generated using HEC-GeoRAS were integrated with the HAZUS damage estimation model to quantify potential flood damages. A benefit-to-cost (BC) ratio was then calculated by comparing the monetary savings from reduced flood damage against the implementation costs of LID measures. Results indicate that the combined LID scenario offers the highest peak flow reduction, with permeable pavement alone reducing flow by 57%, outperforming other techniques under equal area coverage. Among all individual options, permeable pavement yields the highest cumulative BC ratio under all scenarios (4.6), whereas rain barrels are the least effective (2.6). The proposed evaluation framework highlights the importance of economic efficiency in flood mitigation planning and provides a structured foundation for informed decision-making to enhance urban resilience through LID implementation. © The Author(s), under exclusive licence to Springer Nature Switzerland AG 2025.