Section 8 Fair Market Rent (FMR) for ZIP 11101 - 2027

Investment Score for ZIP 11101

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	$3,650
1 Bedroom	$3,840
2 Bedrooms	$4,180
3 Bedrooms	$5,290
4 Bedrooms	$5,800
5 Bedrooms	$6,728
6 Bedrooms	$7,535
7 Bedrooms	$8,138
8 Bedrooms	$8,545

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$3,840	$929,680	0.41%	F
2BR	$4,180	$1,450,086	0.29%	F
3BR	$5,290	$2,084,117	0.25%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11101 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 11101 in Queens County, New York, are as follows for 2026: - 0BR: $3350 - 1BR: $3510 - 2BR: $3850 - 3BR: $4820 - 4BR: $5240 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, comparing these figures to the actual rental market reveals significant disparities. The Zillow median price for a 2BR unit is $1,452,435, which translates to a monthly mortgage payment of approximately $7,000 assuming a 4.5% interest rate and a 20% down payment. This means that the price-to-FMR ratio for a 2BR unit is 31.4x, indicating that the actual rents far exceed the FMRs set by HUD. Given this context, voucher holders face substantial constraints in finding suitable housing. For instance, a 2BR unit priced at $3850 per month would only be affordable if it were significantly below market value. The high price-to-FMR ratio suggests that landlords who accept Section 8 vouchers might struggle to find tenants willing to pay the full FMR due to the limited purchasing power of voucher recipients. #### Affordability & Renter Profile ZIP code 11101 has a population of 42,219, with 84.8% of residents being renters. This indicates a strong rental market, but the median household income of $121,062 suggests that many residents could afford higher rents without assistance. The occupancy rate of 75.5% implies that there is a moderate level of vacancy, but given the high rent-to-income ratio, the market remains tight for those relying on Section 8 vouchers. The affordability gap is stark. A 2BR unit priced at $3850 represents only 38.2% of the median income, meaning that even without a voucher, a significant portion of the population would find it challenging to afford such units. This tight market makes it difficult for voucher holders to secure housing, as they must compete with other renters who can pay higher rents. #### Investor Angle From an investor perspective, the cash flow potential at FMR levels is highly questionable. Given the high price-to-FMR ratio, an investor purchasing a 2BR unit at the Zillow median price of $1,452,435 would likely incur monthly mortgage payments well above the FMR. Assuming a 4.5% interest rate and a 20% down payment, the monthly mortgage payment would be around $7,000, far exceeding the $3850 FMR for a 2BR unit. This mismatch between mortgage costs and FMRs poses a significant challenge for investors looking to generate positive cash flow. The investment grade for properties in this ZIP code is low, especially when considering the constraints faced by Section 8 voucher holders. Investors would need to carefully evaluate their ability to manage properties at below-market rents to ensure compliance with HUD guidelines while maintaining profitability. #### Specific Actionable Insights 1. **Focus on Below-Market Properties:** Investors should seek out properties that are significantly below the Zillow median price. For example, a 2BR unit priced at $800,000 would have a monthly mortgage payment of about $4,000, still above the FMR but potentially manageable with proper property management strategies. 2. **Consider Smaller Units:** Given the high price-to-FMR ratio, smaller units (0BR or 1BR) might offer better cash flow opportunities. A 1BR unit priced at $700,000 would have a monthly mortgage payment of about $3,500, aligning closely with the FMR of $3510. This would allow investors to maintain positive cash flow while complying with HUD requirements. 3. **Evaluate Long-Term Potential:** While the current market conditions present challenges, investors should consider the long-term potential of the area. If the local economy continues to grow, future increases in median income could improve the affordability of higher-priced units. However, this requires a long-term investment horizon and careful risk assessment. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** this ZIP code. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow while adhering to HUD guidelines. The significant disparity between FMR and actual market rents suggests that finding tenants who can utilize their vouchers effectively will be challenging. Therefore, investing in this ZIP code would likely result in financial strain and operational difficulties, making it a less attractive option for Section 8-focused real estate investments.

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.