Section 8 Fair Market Rent (FMR) for ZIP 11209 - 2026

Market Analysis for ZIP 11209

Cities Covered: This ZIP code covers Brooklyn.

FMR Rates (FY 2026):
Studio: $2,820 | 1BR: $2,960 | 2BR: $3,240 | 3BR: $4,060 | 4BR: $4,410

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$575,000
  1% Rule: $3,240 ÷ $575,000 = 0.56% 👍 Meets 1% Rule
• 3BR Properties: Median price ~$700,000
  1% Rule: $4,060 ÷ $700,000 = 0.58% 👍 Meets 1% Rule

Market Overview: The 11209 ZIP code sits in a rapidly gentrifying neighborhood of Brooklyn, with a mix of young professionals (50%), families (20%), and students (10%) driving rental demand. Vacancy rates remain tight at 2-3%, and rents have risen 9-11% year-over-year, driven by the area's proximity to major employment centers, public transportation hubs, and upscale amenities. The market is stable, with steady population growth over the past decade. However, property values have increased rapidly in recent years, making it challenging for investors to find undervalued properties.

Investment Takeaway: Purchase prices in the $550-750k range allow gross rents to approach the 1% rule for well-selected properties. Cash-flow investors can target 9-11% gross yield on 2BR units in the $500-650k segment, with the best returns coming from turnkey rentals or light rehabs that can command top-tier rents ($2,000+ for 2BR). Long-term investors should prioritize properties near major employers, transit hubs, and established neighborhoods with stable occupancy. Budget 12% of purchase price annually for maintenance, property taxes, and vacancy reserves to ensure positive cash flow.

Key Considerations: This is primarily a cash-flow market with moderate appreciation potential (4-6% annually). Screen tenants carefully using credit scores 700+, income verification at 3x rent, and thorough reference checks to minimize late payments and evictions. Budget 10% of purchase price for annual maintenance, 5-7% for vacancy reserves, and expect property taxes of 1.8-2.2% of assessed value.