Location: New York, NY | Metro: New York, 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 | $3,650 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,840 | $765,187 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 11109, located in the New York, NY HUD Metro FMR Area, serves as a strategic anchor for cash flow within a Section 8 portfolio. The Federal Market Rent (FMR) for FY 2024 is set at $4,130, while the market rent stands at $4,548. This creates a positive spread of $418 per unit, ensuring that landlords receive a higher rental income than the federal guidelines require. This difference supports a steady and reliable cash flow, which is crucial for maintaining financial stability and covering operational costs.
Despite the lack of specific data on home values and price-cut shares, the significant disparity between FMR and market rents indicates that landlords can expect a consistent and above-average revenue stream from properties in this ZIP code. The high median income of $204,885 suggests that tenants in this area are more likely to be financially stable and capable of meeting their rental obligations, further reinforcing the reliability of this cash flow.
The ZIP code's characteristics also make it less suitable as an appreciation play due to the absence of relevant data on home value appreciation and days on market (DOM). However, it excels as a diversifier within a broader investment strategy. With 81.4% of the population being renters, this ZIP code offers a robust tenant pool, reducing the risk of vacancy and ensuring a steady demand for rental properties.
In conclusion, ZIP 11109 is best positioned as a cash-flow anchor within a Section 8 portfolio strategy. The positive spread between FMR and market rents, coupled with the high median income, guarantees a reliable source of income. Additionally, its strong renter base makes it a valuable component for diversification, enhancing the overall resilience and performance of the portfolio.
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.