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 | $2,480 |
| 1 Bedroom | $2,610 |
| 2 Bedrooms | $2,840 |
| 3 Bedrooms | $3,590 |
| 4 Bedrooms | $3,940 |
| 5 Bedrooms | $4,570 |
| 6 Bedrooms | $5,118 |
| 7 Bedrooms | $5,527 |
| 8 Bedrooms | $5,803 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,610 | $398,458 | 0.66% | D |
| 2BR | $2,840 | $664,878 | 0.43% | F |
| 3BR | $3,590 | $762,067 | 0.47% | F |
| 4BR | $3,940 | $799,874 | 0.49% | F |
U.S. Census Bureau data (2024)
Located in the Flatbush and Midwood sections of Brooklyn, ZIP code 11203 offers a dense, urban environment characterized by pre-war brick architecture and vibrant commercial corridors along Flatbush Avenue. The neighborhood is primarily residential, featuring a mix of single-family homes and larger multi-unit buildings. A key stabilizing force in the local economy is the presence of nearby institutions such as Kingsborough Community College, which provides steady employment and educational opportunities to the surrounding area.
From an investment standpoint, the current financial data reveals a distinct challenge for the Section 8 strategy in this specific market. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $2,700 (FY2026), while the market rent (ZORI) sits at $2,877, creating a gap of $177 between the voucher ceiling and current market rates. Additionally, the HUD SAFMR for a 2-bedroom unit is listed at $2,430, which is significantly lower than the market rate. Investors face a median home value of $727,299 and a median 2BR sale price of $647,514, with properties sitting on the market for a median of 79 days. Based strictly on the data, voucher tenants do not generate immediate positive cash flow here compared to market-rate tenants.
Demand drivers remain robust, as the area boasts a 60.4% renter share amidst a population of 74,817. With a median household income of $67,897, many local families likely fall within the income band requiring rental assistance. The neighborhood offers convenient transit options via the B and Q subway lines, facilitating access to Manhattan, and is served by reputable local schools that attract long-term families.
The strongest investor angle in 11203 is currently stability and long-term appreciation rather than immediate cash flow maximization via the voucher program. Because the FMR trails the market rent by $177, landlords relying solely on HUD caps may leave money on the table. However, the high renter share and solid institutional anchors suggest that purchasing here at the median price of $647,514 is a play on equity growth and consistent occupancy, accepting that Section 8 serves as a safety net for vacancy rather than a premium revenue generator in this specific ZIP.
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.