In recent years, the rapid expansion of urban areas has led to changes in land use, a reduction in pervious surfaces, and a disturbance in the balance between surface waters and groundwater. These urban changes, combined with inadequate drainage systems and misdirection of runoff, have resulted in severe urban floods, causing numerous fatalities and damage to urban areas. As a result, investigating the effects of flood occurrences and determining proper mitigation measures to reduce flood damage is essential. This paper aims to establish a novel economic-hydrologic model to evaluate the efficacy of Low-impact Development (LID) measures in urban Bronx River catchment, NYC. The model examines reduced peak discharge of flood and imposed damage. Initially, the EPA’s SWMM is used to simulate urban flooding based on recent extreme events. LID scenarios are then implemented, including individual and combined scenarios, to mitigate the adverse impacts of flood occurrences of high to low frequency. By means of the HEC-GeoRAS tool, highly detailed flood inundation maps are generated and seamlessly incorporated into the flood damage estimation model, namely HAZUS, to obtain estimates of the potential damage caused by floods. Using the reduced monetary damages and the implementation cost of LID measures, the benefit-to-cost (BC) ratio is then calculated. Findings indicated that the combined LID scenario is the most effective approach in peak flow reduction. Moreover, Permeable pavement outperforms infiltration trench, bio retention cell, and rain barrel in terms of benefit-to-cost ratio, with rain barrel showing the lowest ratio. The proposed evaluation system for LID measures, with a focus on flood damage reduction as a key benefit, provides valuable insights for identifying optimal scenarios and facilitating informed decision-making.