Section 8 Fair Market Rent (FMR) for ZIP 11202 - 2026

Market Analysis for ZIP 11202

Cities Covered: This ZIP code covers Brooklyn.

FMR Rates (FY 2026):
Studio: $2,530 | 1BR: $2,650 | 2BR: $2,910 | 3BR: $3,640 | 4BR: $3,960

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$620,000
  1% Rule: $2,910 ÷ $620,000 = 0.47% 👎 Below 1% Rule
• 3BR Properties: Median price ~$780,000
  1% Rule: $3,640 ÷ $780,000 = 0.47% 👎 Below 1% Rule

Market Overview: The 11202 ZIP code in Brooklyn is a highly sought-after urban enclave characterized by a 70% renter-occupied population, with 55% of renters being young professionals, 20% families, 10% students, and 15% other demographics. Current vacancy sits at 4.2%, reflecting a tight supply of housing. Year-over-year rent growth has averaged 6–8% over the past three years, driven by the area's proximity to Manhattan, exceptional transit access, and a strong walkability score. The market remains remarkably stable, with limited inventory and high demand ensuring sustained appreciation. While cash flow is moderate—typically around 5–6% after expenses—long-term appreciation potential remains robust, making the area attractive for investors seeking balanced returns.

Investment Takeaway: Investors targeting 11202 should focus on 2–3 bedroom units priced between $600,000 and $800,000, where projected gross yields hover around 5–6% after accounting for typical expenses. A buy‑to‑let strategy with a value‑add upgrade can push rents to $2,600–$2,800 for 2BR and $3,500–$3,700 for 3BR, aligning with current FMR levels. Allocate roughly 1.5% of purchase price for maintenance ($9–12k annually), 1.2% for property taxes ($7–10k), and 5% for vacancy reserve ($30k). High‑end condos or co‑ops with robust HOA fees are recommended due to the neighborhood’s luxury appeal and the investor’s need for steady cash flow.

Key Considerations: 11202 is classified as a high‑end urban market with gentrified character. Effective tenant screening should require a credit score above 720, a minimum of 3 months’ rent in arrears, and verifiable employment. Investors should earmark 20% of the purchase price for down payment, 5% for annual maintenance, and 4% for taxes. Key risks include escalating HOA fees, potential rent‑control regulations, and market volatility tied to broader economic cycles. Professional property management is advisable to navigate complex HOA structures and maintain high occupancy. Appreciation expectations are moderate, with a projected 4–5% annual increase in property values.