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 | $2,280 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,390 | $453,435 | 0.53% | F |
| 2BR | $2,620 | $538,834 | 0.49% | F |
| 3BR | $3,280 | $673,139 | 0.49% | F |
| 4BR | $3,570 | $802,433 | 0.44% | F |
| 5BR | $4,141 | $1,019,748 | 0.41% | F |
U.S. Census Bureau data (2024)
ZIP code 11207, covering East New York in Brooklyn, is a densely populated neighborhood characterized by a high concentration of residential housing and a working-class demographic. The area is primarily served by the New York City Police Department’s 75th Precinct and contains significant transit infrastructure, including the Atlantic Avenue subway line. Local employment is anchored by institutions like the Brookdale University Hospital and Medical Center, which serves as a major employer and stabilizing force for the local economy. Recent city planning initiatives have focused on affordable housing developments, reinforcing the neighborhood’s status as a critical area for rental housing.
From a quantitative perspective, the investment numbers reveal a challenging spread for voucher holders. The FY2026 HUD Fair Market Rent for a 2-bedroom unit is set at $2,570. However, current market rents (Zillow ZORI) are substantially higher at $3,114, creating a deficit of $544 per month that a standard voucher would not cover. For investors looking at acquisition, the median home value sits at $636,250, while the median 2BR sale price is $531,910. With properties sitting on the market for a median of 104 days, the carrying costs during this extended marketing period further compress margins.
The tenant pool is deep, with 74.1% of the population renting and a median household income of $56,523. This income level is below the area median income for New York City, suggesting a robust and consistent demand for housing assistance programs. The neighborhood offers solid connectivity via the A and C trains, and while public school ratings vary, the sheer density of families ensures a steady stream of applicants seeking long-term housing stability in a transit-rich location.
The Section 8 verdict for 11207 is cautious but oriented toward stability rather than maximum cash flow. While the $544 gap between the 2BR FMR ($2,570) and market rent ($3,114) limits immediate returns, the high renter share and lower acquisition price ($531,910 median for 2BRs) present an opportunity for buy-and-hold investors. The primary angle here is acquiring assets below the borough median ($636,250) to secure reliable, government-backed income, provided investors can bridge the rent gap or negotiate purchase prices down to align with the HUD caps.
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.