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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,650 | $735,021 | 0.36% | F |
| 2BR | $2,890 | $957,235 | 0.3% | F |
| 3BR | $3,660 | $1,224,887 | 0.3% | F |
U.S. Census Bureau data (2024)
Zip code 11206, covering parts of Bushwick and East Williamsburg, is a dynamic hub of industrial conversion and creative culture. The neighborhood features a robust transit network, including the L train at the Jefferson Street station, which offers swift access to Manhattan. This connectivity, combined with a growing number of trendy coffee shops and art spaces, continues to attract a diverse population. Major local employers include the NewYork-Presbyterian Brooklyn Methodist Hospital, providing stable jobs and drawing medical professionals to the area.
Financially, the area presents a complex picture for landlords utilizing the Housing Choice Voucher program. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is set at $2,370, while the estimated market rent reaches $3,785, leaving a substantial gap of $1,415 that voucher holders must cover out-of-pocket. Median home values sit at $1,088,831, with a median 2BR sale price of $941,639. Properties move relatively slowly here, with a median of 96 days on market, indicating that investors must be prepared for a longer holding period before realizing a sale.
Demand fundamentals are exceptionally strong due to a massive 88.9% renter share and a median household income of $61,430. This high renter concentration suggests a deep tenant pool, though the local income levels are significantly lower than the market rent would imply, heightening the necessity for voucher usage to afford housing. Families are drawn to the area for amenities like Maria Hernandez Park, and while school ratings vary, the abundance of transit options and neighborhood amenities supports sustained demand for rental units.
The Section 8 verdict leans toward stability and reduced vacancy risk rather than immediate cash-flow maximization. Because the voucher rate lags behind market rent by $1,415, the primary benefit is securing a government-backed tenant in a market where median incomes are $61,430 against steep housing costs. Investors should view this strategy as a defensive play to ensure consistent occupancy in a high-renter, high-value neighborhood, rather than a tool for achieving top-tier market yields.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.