Section 8 Fair Market Rent (FMR) for ZIP 11205 - 2027

Investment Score for ZIP 11205

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$3,240
1 Bedroom	$3,410
2 Bedrooms	$3,710
3 Bedrooms	$4,690
4 Bedrooms	$5,150
5 Bedrooms	$5,974
6 Bedrooms	$6,691
7 Bedrooms	$7,226
8 Bedrooms	$7,587

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$3,410	$781,997	0.44%	F
2BR	$3,710	$1,149,227	0.32%	F
3BR	$4,690	$1,722,369	0.27%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11205 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11205, as set by HUD for 2026, is $3470 for a two-bedroom apartment. This figure represents 44.4% of the median household income in the area, which stands at $93,887. However, the actual rental market in this ZIP code is significantly higher. According to Zillow, the median price for a two-bedroom apartment is $1,172,268, which translates to a monthly rent of approximately $9,769 based on typical mortgage payments. The price-to-FMR ratio for a two-bedroom unit is 28.2x, indicating that actual rents are much higher than the FMR. This means that Section 8 voucher holders face significant constraints in finding suitable housing within their budget. For instance, a voucher holder would have to find a landlord willing to accept $3470 per month for a property that could otherwise command nearly $10,000 in rent. #### Affordability & Renter Profile ZIP code 11205 has a high concentration of renters, with 71.9% of households being renters. The occupancy rate is also quite high at 91.0%, suggesting that the market is relatively tight. Given the high median household income and the fact that the FMR for a two-bedroom unit is only 44.4% of the median income, it is clear that most residents can afford market-rate rents. However, this leaves a significant portion of the population, particularly those relying on Section 8 vouchers, struggling to find affordable housing. The disparity between the FMR and market rates indicates that the rental market is highly competitive and that affordability is a major issue for low-income households. #### Investor Angle From an investor perspective, the ZIP code 11205 presents a challenging environment for cash flow-positive investments at the FMR level. The FMR for a two-bedroom unit is $3470, while the market rent is approximately $9,769. This implies that landlords who agree to participate in the Section 8 program will be receiving a fraction of what they could earn by renting to market-rate tenants. Therefore, the investment grade for properties rented at FMR levels is likely to be low due to the limited potential for profit. Investors looking to maximize returns would need to consider the broader rental market rather than focusing solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Target High-Demand Properties**: Given the tight rental market, focus on properties that are in high demand, such as studios and one-bedroom apartments. The FMR for these units is $3020 and $3170 respectively, which is still a fraction of the market rent but may attract more tenants willing to pay the higher rates. This strategy can help mitigate the risk of lower returns associated with Section 8 participation. 2. **Consider Renovation Projects**: With a median household income of $93,887, there is a strong potential for higher-end renovations to increase the value and rental price of properties. By investing in upgrades and targeting the upper end of the rental market, investors can achieve better cash flow and higher returns. 3. **Explore Mixed-Income Developments**: Developments that offer a mix of market-rate and subsidized units can be a viable option. This approach allows investors to balance the lower returns from Section 8 units with higher returns from market-rate units, potentially achieving a more stable overall cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 11205 is to **Skip**. The high market rents and the significant gap between FMR and actual rents make it difficult to achieve positive cash flow when renting at FMR levels. Instead, investors should consider other ZIP codes with a more favorable price-to-FMR ratio or explore mixed-income developments that can balance the financial impact of participating in the Section 8 program.

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.