If you have an Internet-based business and don't have any particular emphasis on your location ("helps you navigate the local subway"), then "based in NYC" means very little; you could always relocate for at least a summer.

As for "doesn't really require any funding", the money represents the least important reason to work with Y Combinator. We didn't apply because we thought $17k would make the difference between our business succeeding or failing. We applied because we want the business guidance, connections, meetings, resources, investor days, and the opportunity to work on our project full-time distraction-free.

So, really, apply. :)