Section 8 Fair Market Rent (FMR) for ZIP 11106 - 2027

Investment Score for ZIP 11106

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	$3,020
1 Bedroom	$3,180
2 Bedrooms	$3,460
3 Bedrooms	$4,380
4 Bedrooms	$4,800
5 Bedrooms	$5,568
6 Bedrooms	$6,236
7 Bedrooms	$6,735
8 Bedrooms	$7,072

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	$3,180	$618,025	0.51%	F
2BR	$3,460	$798,025	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11106 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11106 is set by HUD for 2026, with the following rates: - 0BR: $2890 - 1BR: $3030 - 2BR: $3320 (which is 46.9% of the median household income) - 3BR: $4160 - 4BR: $4520 These FMRs represent the maximum rent that a Section 8 voucher holder can pay for a unit. However, the actual rents in the area are significantly higher. For instance, Zillow's median price for a 2BR property is $795,274, which translates to a monthly rental cost of approximately $6,627 based on typical mortgage payments and property management costs. This means that the actual rent for a 2BR unit is roughly 20 times the FMR, indicating a substantial gap between what voucher holders can afford and the actual market rates. This gap imposes significant constraints on voucher holders, making it difficult for them to find affordable housing options within the ZIP code. They would likely need to seek units outside of 11106 where rents are lower or consider smaller units that might be within their budget. #### Affordability & Renter Profile ZIP code 11106 has a population of 40,930, with 83.4% of residents being renters. The occupancy rate stands at 87.3%, suggesting a relatively tight market where most available units are occupied. Given the high renter percentage and the occupancy rate, there is a strong demand for rental properties in this area. However, affordability is a major concern. With a median household income of $84,867, the FMR for a 2BR unit represents 46.9% of the median income. This indicates that even at the FMR level, a significant portion of the income is dedicated to housing costs, leaving little room for other expenses. The high price-to-FMR ratio of 20.0x further underscores the unaffordable nature of the market for many residents, particularly those relying on Section 8 vouchers. Given these factors, the renters in 11106 are likely to be a mix of middle-income individuals who can afford the high rents and low-income individuals who rely heavily on subsidies like Section 8. The tight market conditions mean that there is little oversupply, and competition for units is fierce. #### Investor Angle From an investor perspective, the ZIP code 11106 presents a challenging scenario. While the actual market rents are high, the FMRs set by HUD are much lower. For example, the FMR for a 2BR unit is $3320, whereas the actual market rent is around $6,627. This means that if an investor is looking to participate in the Section 8 program, they would have to accept a much lower rent compared to the market rate. To determine if this ZIP code is cash-flow positive at FMR, we must consider the typical operating costs and mortgage payments associated with a property. Assuming a 2BR unit costs $795,274, a typical mortgage payment could be around $3,314 per month (based on a 30-year fixed-rate mortgage at 4%). Adding property taxes, insurance, maintenance, and management fees, the total operating cost could easily exceed the FMR of $3320. Therefore, it is unlikely that an investor would achieve positive cash flow at the FMR level. In terms of investment grade, the high price-to-FMR ratio suggests that the investment risk is elevated due to the limited number of tenants who can afford the FMR. Investors should carefully evaluate the potential for vacancy and the difficulty in attracting tenants who qualify for Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on acquiring and renting out smaller units such as studios and 1BR apartments. These units are more likely to be within the FMR range, thus attracting more Section 8 voucher holders. For instance, the FMR for a 1BR unit is $3030, which is still significantly below the actual market rent but closer to being feasible. 2. **Consider Adjacent ZIP Codes**: If the goal is to serve Section 8 voucher holders, investors might want to look into adjacent ZIP codes where rents are lower. This could provide better cash flow opportunities while still serving the target demographic. For example, ZIP code 11101 has a lower median home value and might offer more affordable rental options. 3. **Evaluate Property Costs and Operating Expenses**: Before investing in 11106, thoroughly evaluate the purchase price and operating expenses of the property. Ensure that the projected rental income at the FMR level covers all costs, including mortgage payments, taxes, insurance, and maintenance. In 11106, this is likely to be a challenge given the high market rents and the low FMRs. #### Bottom Line For Section 8-focused investors, the ZIP code 11106 is not recommended for purchase. The high price-to-FMR ratio and the tight market conditions make it difficult to achieve positive cash flow. Additionally, the limited number of tenants who can afford the FMR creates a high risk of vacancy. Instead, investors should consider adjacent ZIP codes with lower median home values and rents that are more aligned with the FMRs set by HUD. If investors choose to hold properties in 11106, they should prepare for lower-than-market rental incomes and potentially higher vacancy rates. The bottom line is to skip purchasing properties in 11106 for Section 8 investments and instead focus on areas where the FMRs are more closely aligned with the actual market rents.

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.