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 | $2,520 |
| 1 Bedroom | $2,650 |
| 2 Bedrooms | $2,890 |
| 3 Bedrooms | $3,660 |
| 4 Bedrooms | $4,010 |
| 5 Bedrooms | $4,652 |
| 6 Bedrooms | $5,210 |
| 7 Bedrooms | $5,627 |
| 8 Bedrooms | $5,908 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,650 | $481,805 | 0.55% | F |
| 2BR | $2,890 | $689,331 | 0.42% | F |
| 3BR | $3,660 | $1,119,459 | 0.33% | F |
U.S. Census Bureau data (2024)
ZIP code 11204, encompassing the Bensonhurst neighborhood in Brooklyn, offers investors a dense, urban environment characterized by strong family retention and established infrastructure. The area is predominantly residential, featuring a mix of pre-war multi-family buildings and walk-up apartments. A key local institution often noted in community profiles is Maimonides Medical Center, a major employer and healthcare hub that anchors the neighborhood economy and provides consistent demand for nearby housing.
From a strictly numerical standpoint, 11204 presents a challenging but tangible spread for voucher program participants. The HUD Fair Market Rent (FMR) for a 2-bedroom unit in FY2024 is $2,530, while current market rents (Zillow ZORI) sit higher at $2,769, resulting in a gap of $239. This implies that standard vouchers may require tenant supplementation to reach prevailing market rates. Investors face a high barrier to entry with a median home value of $1,232,591 and a median 2BR sale price of $694,762, though properties turn over relatively quickly with a median days on market of 43 days.
The tenant pool here is substantial, driven by a 65.5% renter share and a median household income of $69,479. While the median income suggests that many residents can afford market rates, the income ceiling for voucher eligibility creates a niche for more affordable units. The neighborhood is served by highly-rated public schools such as P.S. 212 and P.S. 204, making it attractive to families seeking stability. Transit access is robust, with the D train providing direct service to Manhattan, a significant draw for renters.
For Section 8 investors, 11204 is primarily a stability and appreciation play rather than an immediate high-yield cash flow generator. The tight $239 rent gap between the 2BR FMR and market rates compresses margins, requiring careful acquisition pricing relative to the $694,762 median 2BR sale price. However, the presence of major employers like Maimonides Medical Center and the area's consistent demand driven by family-oriented amenities suggest low vacancy risk and long-term asset appreciation.
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.