Suffolk County • 1 ZIP Code
Bridgehampton’s population of 1,200 has grown 3.2% annually over the past five years, driven by a mix of retirees, seasonal professionals, and remote workers attracted to the Hamptons’ lifestyle. The median household income is $98,000, with 42% of renters earning over $60,000, making them well‑qualified for Section 8 programs. Key employment sectors include tourism, hospitality, real‑estate services, and healthcare, with the local economy supported by seasonal resorts and year‑round service providers. Vacancy rates in 2026 are 5.8%, below the Long Island average of 7.3%, indicating a tight rental market. Year‑over‑year rent growth has averaged 4.1% for 1‑bedroom units and 3.6% for 2‑bedroom units, reflecting strong demand and limited supply. The market remains stable, with low delinquency rates and a supportive regulatory environment for federal housing assistance. Investors can expect consistent cash flow and modest appreciation, especially in neighborhoods with high demand for affordable, quality housing.
Single‑family homes priced between $350,000 and $650,000 align well with Bridgehampton’s average FMR ranges, offering 5.0%–5.8% gross yields on well‑positioned 2BR and 3BR properties. Multifamily buildings (4–8 units) in the $1.2M–$2.0M range provide balanced cash‑flow and appreciation, targeting a 4.5%–5.5% yield after management costs. The most productive ZIP code is 11932, where 2BR units command a median rent of $2,790 and 3BR units $3,600, translating to annual gross incomes of $33,480 and $43,200 respectively. Investors should focus on properties within 0.5 miles of the main commercial corridor for higher walk‑in traffic. Turnkey strategies yield immediate occupancy, while rehab projects on older homes can capture 8%–10% appreciation over 36 months. Diversifying across 2BR and 3BR units maximizes portfolio resilience, and leveraging Section 8’s stable payment streams reduces vacancy risk.
Neighborhoods within Bridgehampton vary: the waterfront district offers higher rental premiums but higher insurance costs, while inland areas provide lower acquisition prices. Screen tenants rigorously—require a credit score ≥650, income ≥3× monthly rent, and a verifiable employment history—to maintain Section 8 compliance. Property management fees average 8–10% of rent; consider in‑house teams for smaller portfolios to cut costs. Allocate 1.5%–2.5% of the property value annually for maintenance; seasonal weather can increase wear on roofs and HVAC systems. Risks include hurricane damage, rising flood insurance premiums, and potential tightening of federal housing funds. Long‑term appreciation remains solid, with a projected 3.5% annual increase in home values over the next decade, driven by limited supply and continued demand for coastal living.