Section 8 Fair Market Rent (FMR) for ZIP 11003 - 2027

Investment Score for ZIP 11003

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,000
1 Bedroom	$2,330
2 Bedrooms	$2,740
3 Bedrooms	$3,520
4 Bedrooms	$3,740
5 Bedrooms	$4,338
6 Bedrooms	$4,859
7 Bedrooms	$5,248
8 Bedrooms	$5,510

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,740	$638,915	0.43%	F
3BR	$3,520	$738,628	0.48%	F
4BR	$3,740	$777,322	0.48%	F
5BR	$4,338	$878,908	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11003 (Elmont, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11003, as set by HUD for 2026, is $2890 for a two-bedroom apartment. This amount represents 27.9% of the median household income in Elmont, which is $124,115. The FMR is intended to reflect the average rent for a modest apartment in a given area, but it often falls short of actual rental costs. In Elmont, the Zillow median price for a two-bedroom home is $625,734, indicating that the actual rental market is significantly higher than the FMR. The price-to-FMR ratio for a two-bedroom unit is 18.0x, meaning that the typical rental cost is nearly 18 times the FMR. This suggests that there is a significant gap between the FMR and the actual rental market, creating substantial constraints for voucher holders. They would likely struggle to find suitable housing within their budget, as the FMR is far below the market rate. #### Affordability & Renter Profile Elmont has a population of 45,174, with 21.0% of residents being renters. The occupancy rate is 95.5%, indicating a relatively tight rental market. Given the high median household income and the fact that only 21.0% of the population are renters, it is clear that the majority of residents own their homes. However, those who do rent are likely to be middle-income families or individuals who cannot afford to purchase property in the area. With the median household income being $124,115, the FMR for a two-bedroom apartment ($2890) is indeed affordable for many residents, but the actual rental market price ($625,734) is not. This makes it challenging for lower-income residents to find affordable housing, especially when relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 11003 is not cash-flow positive at the FMR levels. The actual rental market price is significantly higher than the FMR, making it difficult for landlords to break even if they accept Section 8 vouchers. For instance, a two-bedroom apartment priced at $625,734 would have a monthly mortgage payment of approximately $2600 based on a 30-year fixed-rate mortgage at 4.5%. Adding property taxes, insurance, maintenance, and other expenses would likely push the total cost above the FMR of $2890. Therefore, accepting Section 8 vouchers would result in a negative cash flow for most properties in this ZIP code. The investment grade for this ZIP code is low due to the mismatch between the FMR and the actual rental market prices. Investors seeking to maximize returns would find it challenging to achieve profitability while adhering to the FMR guidelines. Additionally, the high occupancy rate indicates that there is strong demand for rental units, but the high actual rental prices suggest that the market is geared towards higher-income tenants rather than those relying on Section 8 assistance. #### Specific Actionable Insights 1. **Focus on Higher-Income Tenants**: Given the high median household income and the tight rental market, investors should focus on attracting higher-income tenants who can pay the actual market rates. This would ensure a positive cash flow and better returns on investment. 2. **Consider Mixed-Income Developments**: If investors wish to participate in the affordable housing market, they could consider mixed-income developments where a portion of the units are rented at market rates, while others are offered at reduced rates through government programs like Section 8. This approach can balance the financial impact and still provide affordable housing options. 3. **Evaluate Property Tax and Maintenance Costs**: Before investing in properties in Elmont, it is crucial to evaluate the additional costs such as property taxes, insurance, and maintenance. These costs can significantly affect the overall profitability of a rental property, especially when operating at FMR levels. #### Bottom Line For Section 8-focused investors, the ZIP code 11003 is not recommended. The high actual rental prices and the low FMR make it financially unviable to operate at FMR levels. The recommendation for this ZIP code is to **Skip** investments aimed solely at Section 8 tenants. Instead, investors should consider strategies that cater to the broader rental market or explore opportunities in areas with a closer alignment between FMR and actual rental prices.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.