The memorial is at the Calcagno Homes, where Earl Simmons lived as a child, and is part of a mural that was restored at the public housing complex.
Artist Floyd Simmons added DMX to the work.
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The rapper's family members were at the ceremony, and they joined the Municipal Housing Authority for the City of Yonkers and community members to give input on what the mural should show.
"May this mural remind everyone that one young man from Yonkers had a dream to rap, and that same young man from Yonkers went on to reach millions across the world with his rhyme and words," DMX's fiancee Desiree Lindstrom said. "Oh behalf of Earl's children, thank you Yonkers for the the tribute. Never forgotten, forever X."
In addition to featuring DMX, the mural keeps its original subject, Boyce "Scoop" Coleman, who drowned saving a child in the Hudson River in 2014.
DMX died April 9 after suffering a "catastrophic cardiac arrest."
He spent several days on life support after being rushed to a New York hospital from his home April 2.
WATCH THE CELEBRATION OF LIFE FOR DMX HERE:
The 50-year-old Grammy-nominated rapper delivered iconic hip-hop songs such as "Ruff Ryders' Anthem" and "Party Up (Up in Here)." He also starred in several films including "Belly" and "Romeo Must Die."
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