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 | $2,430 |
| 1 Bedroom | $2,560 |
| 2 Bedrooms | $2,790 |
| 3 Bedrooms | $3,530 |
| 4 Bedrooms | $3,870 |
| 5 Bedrooms | $4,489 |
| 6 Bedrooms | $5,028 |
| 7 Bedrooms | $5,430 |
| 8 Bedrooms | $5,702 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,790 | $676,558 | 0.41% | F |
| 3BR | $3,530 | $735,826 | 0.48% | F |
| 4BR | $3,870 | $800,202 | 0.48% | F |
U.S. Census Bureau data (2024)
Situated in the eastern reaches of Brooklyn, ZIP code 11208 encompasses East New York, a neighborhood characterized by a mix of historic brick row houses and larger multifamily developments. This area is predominantly residential and has been a focal point for significant rezoning efforts aimed at spurring new affordable housing and retail growth. While heavy industrial presence has diminished over the years, the neighborhood remains a crucial logistics hub due to its proximity to major expressways, providing local employment opportunities. The New York City Housing Authority (NYCHA) operates several major developments here, such as the Linden Houses, which serves as a central institution and a consistent source of housing stability within the community.
From an investment standpoint, the math reveals a notable divergence between subsidies and market rates. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $2,680, significantly lagging behind the current market rent of $3,076. This results in a gap of $396 per month, meaning landlords accepting Section 8 vouchers would effectively rent at roughly 87% of market potential. Real estate values remain substantial, with a median home value of $729,692 and a specific median 2BR sale price of $650,345. Properties are moving at a moderate pace, with a median of 40 days on market.
The tenant pool is vast and rental-dependent, driven by a 75.1% renter share and a median household income of $62,077. Given that local incomes are modest relative to citywide benchmarks, the high cost of market rents often pushes residents toward subsidized housing options, creating a structural demand for voucher programs. The neighborhood is well-connected by the 3 and 4 subway lines, facilitating commutes to Manhattan and downtown Brooklyn, which is essential for this workforce demographic. While public schools in the area face challenges, ongoing community development projects continue to improve the local quality of life, sustaining tenant retention.
The Section 8 verdict for 11208 leans heavily toward stability rather than maximum immediate cash flow. Because the 2BR FMR sits $396 below market rent, investors should not view vouchers as a premium yield strategy but as a hedge against vacancy. In a neighborhood where three-quarters of residents rent, securing a government-backed tenant guarantees consistent income despite the lower ceiling. The strongest investor angle here is acquiring multifamily assets at the median price point to leverage the high rental demand, prioritizing long-term occupancy over chasing the higher open-market ZORI figures.
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.