Location: New York, NY | Metro: Nassau-Suffolk, NY HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,050 |
| 1 Bedroom | $3,210 |
| 2 Bedrooms | $3,490 |
| 3 Bedrooms | $4,420 |
| 4 Bedrooms | $4,840 |
| 5 Bedrooms | $5,614 |
| 6 Bedrooms | $6,288 |
| 7 Bedrooms | $6,791 |
| 8 Bedrooms | $7,131 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,210 | $407,751 | 0.79% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 11005 within the New York, NY HUD Metro FMR area reveals several key points that are crucial for landlords and small-portfolio investors.
Firstly, the rent math does not work favorably. The Fair Market Rent (FMR) set at $4130 for the fiscal year 2024 significantly exceeds the average market rent of $2,343 reported by the Census ACS. This discrepancy suggests that landlords might struggle to find tenants willing to pay the higher FMR rate, especially when considering the actual rental rates in the area.
Secondly, the acquisition of properties in this ZIP code is not financially feasible. With a median home value marked as N/A, indicating a lack of residential homes for sale, and an N/A-day DOM (days on market), which signifies that there are no recent sales data available, coupled with a mere 0.1% share of listings experiencing price cuts, it is evident that the residential property market is either inactive or highly specialized, making it difficult for new investors to enter.
Lastly, the tenant demand is low. The ZIP code has a total population of 2,174, with only 5.5% being renters. This limited pool of potential tenants means that there is not a robust demand for rental units, which could result in prolonged vacancies and reduced income for landlords.
In conclusion, ZIP code 11005 presents significant challenges for landlords and small-portfolio investors. The disparity between the FMR and market rent indicates a misalignment in pricing expectations, while the lack of available residential properties and minimal tenant demand suggest that this area is not conducive to profitable investment. Therefore, caution is advised before committing resources to this ZIP code.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.