Kings County • 37 ZIP Codes
Brooklyn’s population of 2.6 million ranks third in New York State, with a median household income of $75,000 and roughly 30 % of residents renting. The borough’s economy is anchored by technology hubs in Flatbush and Flatiron District, a robust financial services cluster near Downtown Brooklyn, and a thriving tourism and hospitality sector centered on Williamsburg and Brooklyn Heights. Historical data shows a 1.2 % annual population growth over the past decade, driven by in‑migration of young professionals and families. Vacancy rates citywide sit at 4.5 %, slightly below the statewide average of 5.3 %. Year‑over‑year rent growth averaged 3.8 % in FY 2026, with Studio rents at $2,701 and 4‑bedroom units at $4,227. The market remains stable, with a low default rate on Section 8 contracts and a strong appetite for rental inventory, making Brooklyn an attractive destination for long‑term investors seeking consistent cash flow and moderate appreciation.
Single‑family homes in Brooklyn typically command $1.2 M–$1.8 M, duplexes trade between $800,000–$1.2 M, and small multifamily buildings price from $1.5 M to $3 M. Investors can expect a gross yield of 7–9 % pre‑expenses and a net yield of 5–7 % after accounting for 8–10 % property‑management fees and a 1–2 % maintenance reserve. The most lucrative ZIP codes—11207 (Williamsburg), 11205 (Fort Greene), 11209 (Bushwick), and 11218 (Midwood)—offer the highest rent‑to‑price ratios and fastest appreciation trends, with a 4.5–5.0 % annual increase in property values. Target assets include 2‑BR and 3‑BR multifamily units, duplexes, and walk‑up SFH units that can be repositioned through cosmetic rehab or unit conversion. Recommended strategies: “turnkey” purchases in 11207 and 11205 for immediate cash flow, “rehab” projects in 11209 to capture equity, and “lease‑to‑own” models in 11218 to tap long‑term renters. Diversifying across these ZIPs mitigates local market shocks and maximizes portfolio stability.
Neighborhoods within Brooklyn vary sharply; Lower East Side offers high density and cultural vibrancy, while Midwood provides more single‑family stock and lower turn‑over. A rigorous tenant screening protocol—credit score ≥ 650, income ≥ 3× monthly rent, and two years of rental history—reduces vacancy risk. Property‑management costs average 8–10 % of gross rent; partnering with a local firm can shave 1–2 % off that fee. Annual maintenance budgets should target 1–2 % of the property’s market value to cover HVAC, roof, and common‑area upkeep. Risk factors include potential zoning changes that limit density, rent‑control caps that cap rent growth, and rising construction costs that could erode rehab margins. Despite these risks, Brooklyn’s long‑term appreciation outlook remains robust, with a projected 5–6 % CAGR over the next decade, driven by continued in‑migration and limited new supply.