Section 8 Fair Market Rent (FMR) for ZIP 10178 - 2026

Market Analysis for ZIP 10178

Cities Covered: This ZIP code covers Flatbush, East Flatbush.

FMR Rates (FY 2026):
Studio: $3,120 | 1BR: $3,270 | 2BR: $3,590 | 3BR: $4,500 | 4BR: $4,880

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$650,000
  1% Rule: $3,590 ÷ $650,000 = 0.55% 👎 Below 1% Rule
• 3BR Properties: Median price ~$850,000
  1% Rule: $4,500 ÷ $850,000 = 0.53% 👎 Below 1% Rule

Market Overview: The 10178 ZIP code, located in Brooklyn’s Flatbush and East Flatbush neighborhoods, has a high renter concentration of approximately 70% versus 30% owner‑occupied units. Current vacancy sits at 3.5%, reflecting robust demand. Year‑over‑year rent growth averages 4.5% to 6%, driven by proximity to multiple transit lines, new commercial developments, and a steady influx of young professionals. Market stability is strong; the area benefits from continuous population density and limited supply, ensuring price resilience. Cash flow potential is moderate with a typical gross yield of 4–5%, but long‑term appreciation remains significant, historically rising 8–10% annually. Investors can expect steady rental income coupled with appreciable equity gains over time.

Investment Takeaway: With median sales at $650,000 for 2‑bedrooms and $850,000 for 3‑bedrooms, investors targeting 10178 should aim for purchase prices in the $600k–$900k range to secure a 4–5% gross yield. Rent targets of $3,600 for 2BR and $4,500 for 3BR align with FMR levels and competitive market rates. Allocate 1% of purchase price ($6k–$9k) annually for maintenance, 1.5% for property taxes, and 2% for vacancy reserves. Target buy‑to‑hold or renovation strategies on multi‑unit condos, leveraging low vacancy and strong appreciation trends for a balanced cash‑flow and equity build.

Key Considerations: 10178 is classified as an urban high‑density market with high rental turnover. Tenant screening should require a credit score above 650, income at least 3× the monthly rent, and a stable employment history. Allocate 8% of gross income to property management, 1% to maintenance, and 2% to vacancy reserves. Key risks include rent‑control regulations, potential zoning changes, and the impact of macroeconomic shifts on tenant demand. Despite these risks, long‑term appreciation expectations remain solid, with historical gains averaging 8% per annum over the past decade.