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 | $2,920 |
| 1 Bedroom | $3,080 |
| 2 Bedrooms | $3,350 |
| 3 Bedrooms | $4,240 |
| 4 Bedrooms | $4,650 |
| 5 Bedrooms | $5,394 |
| 6 Bedrooms | $6,041 |
| 7 Bedrooms | $6,524 |
| 8 Bedrooms | $6,850 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,080 | $371,321 | 0.83% | C |
| 2BR | $3,350 | $663,989 | 0.5% | F |
| 3BR | $4,240 | $1,316,407 | 0.32% | F |
| 4BR | $4,650 | $1,610,475 | 0.29% | F |
| 5BR | $5,394 | $2,104,830 | 0.26% | F |
U.S. Census Bureau data (2024)
Bay Ridge, comprising the 11209 ZIP code, offers investors a classic brownstone neighborhood feel along the Brooklyn waterfront with a strong sense of community stability. The area is largely residential, characterized by pre-war apartment buildings and single-family homes, and is often cited as a quieter alternative to nearby Manhattan-adjacent districts. A major local institution is NYU Langone Hospital—Brooklyn, which serves as a significant employer and provides a steady base of healthcare professionals seeking nearby housing.
Financially, the math presents a clear arbitrage opportunity. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $2,970, while current market rents (Zillow ZORI) sit at just $2,442, creating a substantial positive gap of $528 per month. Median home values are high at $814,244, but the market shows some patience, with properties sitting for a median of 104 days before selling. This suggests that while asset prices are elevated, landlords willing to accept Section 8 vouchers can secure rates well above standard market averages.
Demand drivers are robust here, bolstered by a massive 63.8% renter share and a median household income of $93,854, indicating a population that can generally support higher rents yet still values the subsidy program’s security. The neighborhood is served by the R subway line, offering direct access to Manhattan, which appeals to commuters. Additionally, Bay Ridge is known for highly rated public schools and scenic parks like Shore Road Park, making it attractive for long-term family tenants who may utilize housing vouchers.
The Section 8 verdict for 11209 is strongly favorable for cash flow. The $528 spread between the HUD payment and market rent is a significant premium that immediately boosts net operating income. With high local incomes and a renter-majority population, investors can expect a stable tenant pool where the government-backed rate outperforms the private market, making this a target for income-focused portfolios rather than quick-flip appreciation plays.
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.