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 | $3,890 |
| 1 Bedroom | $4,100 |
| 2 Bedrooms | $4,460 |
| 3 Bedrooms | $5,640 |
| 4 Bedrooms | $6,190 |
| 5 Bedrooms | $7,180 |
| 6 Bedrooms | $8,042 |
| 7 Bedrooms | $8,685 |
| 8 Bedrooms | $9,119 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $4,100 | $921,022 | 0.45% | F |
| 2BR | $4,460 | $1,632,446 | 0.27% | F |
| 3BR | $5,640 | $2,770,773 | 0.2% | F |
| 4BR | $6,190 | $5,123,765 | 0.12% | F |
U.S. Census Bureau data (2024)
New York, NY 11201 encompasses Brooklyn Heights, Downtown Brooklyn, and parts of DUMBO, characterized by historic brownstones and high-density luxury towers near the East River. This area is a major employment and cultural hub, anchored significantly by the Brooklyn Navy Yard, a massive industrial park that now hosts over 500 companies and thousands of jobs in tech and manufacturing. The neighborhood offers a mix of pre-war charm and modern waterfront developments, with Brooklyn Bridge Park serving as a primary recreational draw. Local regulations generally favor strong tenant protections, requiring landlords to navigate strict compliance standards.
Financially, 11201 presents a challenging mathematical picture for voucher holders. The FY2026 2-Bedroom Fair Market Rate (FMR) is set at $4,370, yet the current market rent (Zillow ZORI) sits at $4,451, creating a deficit of $81. With a median home value of $1,363,316 and a median 2-bedroom sale price of $1,617,491, acquisition costs are steep. Properties move relatively quickly for New York, with a median of 60 days on market. Based on these figures, standard Section 8 tenants do not cash-flow here without substantial rent adjustments, as the subsidy falls short of prevailing market rates.
Despite the tight math, demand remains robust due to the area’s demographics and infrastructure. The population is 64.1% renters, and the median household income is $173,136, indicating a tenant pool with high earning potential that overlaps with the voucher income caps. Access is excellent, served by numerous subway lines and the NYC Ferry, making it highly desirable for commuters. The neighborhood is also renowned for top-rated public schools, such as P.S. 8 in Brooklyn Heights, which drives consistent family housing demand regardless of the payment source.
The Section 8 verdict for 11201 is pure appreciation plays with high tenant quality rather than immediate cash flow. The $81 gap between the $4,370 FMR and $4,451 market rent suggests investors should target market-rate tenants or voucher holders willing to pay the difference out-of-pocket. With median incomes exceeding $173,000, the pool of potential renters is financially stable, mitigating default risk even if the monthly yield is slim. Investors should prioritize equity growth in this $1.6M+ market over rental subsidies.
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.