Suffolk County • 1 ZIP Code
Hampton Bays hosts a population of approximately 15,000 residents, with a median household income of $68,500 and a renter penetration rate near 58%. The community is largely composed of families and retirees, creating a stable demand for mid‑range rental units. Key employment sectors include tourism, hospitality, and retail, supported by the nearby Long Island MacArthur Airport and seasonal resorts. Population trends show a modest 1.2% annual growth over the past five years, largely driven by new housing developments. Vacancy rates are consistently low, averaging 3.8% in FY 2026, which is below the Long Island average of 5.4%. Year‑over‑year rent growth has averaged 4.6% since FY 2024, reflecting a balanced market where landlords can reliably increase rents without triggering high turnover. Overall, the market remains stable with a favorable investment climate: strong tenant demand, controlled vacancy, and incremental rent appreciation make Hampton Bays an attractive location for investors seeking reliable cash flow with moderate appreciation potential.
Property prices in Hampton Bays range from $250,000 for a 1‑BR condo to $1.4 million for a 4‑BR single‑family home. Multifamily buildings priced between $700,000 and $1.2 million often yield 7.5% to 9.0% gross returns when leased at FY 2026 FMR rates. The most profitable ZIP 11946 segments include the “East End” and “Marshland” areas, where 2‑BR units command rents of $2,900–$3,200 and 3‑BR units $3,760–$4,200. Target property types are 2‑BR and 3‑BR multifamily units and renovated single‑family homes; these units balance high cash flow with appreciation upside. Recommended strategies include turnkey acquisitions of pre‑renovated multifamily complexes, which average a 12‑week rehab cycle, and “buy‑and‑hold” single‑family homes that can be upgraded for a 15% higher rental yield. Investors should focus on properties within 0.5 miles of the Amtrak station and the Atlantic Ocean to capture premium rents and maintain long‑term value.
Neighborhood variations are pronounced: the “South Shore” offers more affordable units but lower rents, whereas “North Shore” commands higher rents with slightly higher vacancy risks (up to 5%). Tenant screening should prioritize credit scores above 650, income at least 3× the rent, and a 12‑month rental history. Property management costs average 8.5% of gross rent; investors should negotiate reduced rates for long‑term contracts. Maintenance budgets should allocate 10% of net operating income, with an additional 2% contingency for seasonal storm repairs. Risks include seasonal tourism downturns, rising insurance premiums, and potential flood zone exposure. Long‑term appreciation is projected at 3.5%–4.0% annually, driven by limited land supply and continued demand from retirees and remote workers.