Section 8 Fair Market Rent (FMR) for ZIP 11040 - 2027

Investment Score for ZIP 11040

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	$2,280
1 Bedroom	$2,500
2 Bedrooms	$2,920
3 Bedrooms	$3,760
4 Bedrooms	$4,000
5 Bedrooms	$4,640
6 Bedrooms	$5,197
7 Bedrooms	$5,613
8 Bedrooms	$5,894

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	$2,920	$895,847	0.33%	F
3BR	$3,760	$969,567	0.39%	F
4BR	$4,000	$1,029,803	0.39%	F
5BR	$4,640	$1,212,433	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11040 (New Hyde Park, NY) #### Section 8 Voucher Dynamics In ZIP code 11040, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $3,060 per month for 2026. However, the actual rental market is significantly higher, with the Zillow median price for a two-bedroom home being $863,949. This translates to a price-to-FMR ratio of 23.5 times, indicating that the actual market rent far exceeds the FMR. For instance, if we assume a typical rental yield of 1%, the monthly rent based on the median price would be approximately $7,199. This means that a Section 8 voucher holder would struggle to find a suitable property within their budget, as the actual rent is likely to be much higher than the FMR. The constraints for voucher holders are substantial. They must find landlords willing to accept a rent that is significantly lower than the market rate. Given the high cost of living and the premium nature of the housing market in New Hyde Park, it is unlikely that many landlords will be interested in accepting Section 8 vouchers unless they are mandated by local regulations or have a strong social mission. #### Affordability & Renter Profile The population of New Hyde Park is 41,988, with only 11.0% of residents being renters. The occupancy rate is 95.2%, suggesting that the housing market is relatively tight, with most units occupied. The median household income is $154,696, which places this area among the higher-income brackets. The fact that 2BR FMR represents only 23.7% of the median income indicates that the majority of residents can afford market-rate housing without assistance. Given the low percentage of renters and the high median income, it is reasonable to conclude that those who do rent are likely to be higher-income individuals or families who choose to rent rather than buy due to lifestyle preferences or financial strategies. The tight market conditions make it difficult for lower-income renters to find affordable housing, especially when relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 11040 presents a challenging environment for cash flow-positive investments at FMR levels. With the Zillow median price for a two-bedroom home being $863,949 and the FMR at $3,060, the potential rental income is far below the market rate. Assuming a conservative mortgage rate of 5%, the monthly payment on a $863,949 property would be around $4,500, excluding taxes, insurance, and maintenance costs. This makes it nearly impossible to achieve positive cash flow at the FMR level. Moreover, the investment grade for properties in this ZIP code is likely to be low due to the limited demand for Section 8 tenants and the high cost of ownership relative to rental income. Investors should consider the broader context of the real estate market, including the potential for appreciation and the stability of long-term rental agreements, before making any decisions. #### Specific Actionable Insights 1. **Focus on Multi-Family Properties**: Single-family homes are less likely to be rented by Section 8 voucher holders due to the high price-to-FMR ratio. Investors might find better opportunities in multi-family buildings where economies of scale can help manage costs. For example, a three-bedroom unit renting at $3,960 (FMR) could potentially cover a portion of the mortgage and operating expenses of a larger building. 2. **Consider Alternative Rental Assistance Programs**: Since the FMR is so far below market rates, investors might want to explore alternative rental assistance programs that offer higher subsidies or incentives for landlords. These programs could help bridge the gap between the FMR and the actual rental costs, making the investment more feasible. 3. **Engage with Local Real Estate Agents**: To understand the nuances of the local rental market, investors should engage with experienced real estate agents in the area. Agents can provide insights into the specific challenges and opportunities related to Section 8 rentals and help identify properties that might be more attractive to voucher holders. #### Bottom Line For investors focused specifically on Section 8 properties, the ZIP code 11040 (New Hyde Park, NY) is generally not recommended. The high price-to-FMR ratio and the limited number of renters make it difficult to achieve positive cash flow. The recommendation for this ZIP code is to **Skip** unless you are prepared to invest in larger multi-family properties or are willing to explore alternative rental assistance programs. The tight market and high median income suggest that the focus should be on other areas with a higher percentage of renters and more favorable FMR-to-market rent ratios.

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.