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 | $3,330 |
| 1 Bedroom | $3,510 |
| 2 Bedrooms | $3,820 |
| 3 Bedrooms | $4,830 |
| 4 Bedrooms | $5,300 |
| 5 Bedrooms | $6,148 |
| 6 Bedrooms | $6,886 |
| 7 Bedrooms | $7,437 |
| 8 Bedrooms | $7,809 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,510 | $1,013,351 | 0.35% | F |
| 2BR | $3,820 | $1,513,880 | 0.25% | F |
| 3BR | $4,830 | $2,142,302 | 0.23% | F |
U.S. Census Bureau data (2024)
New York’s 11211 ZIP code, encompassing Williamsburg, has evolved from an industrial hub to one of the city’s most sought-after residential enclaves. Known for its vibrant arts scene, high-end boutiques along Bedford Avenue, and transformed warehouse lofts, the neighborhood offers a dense urban lifestyle with easy access to Manhattan via the L train at Bedford Avenue. A major local institution is the sprawling NYC Health + Hospitals/Woodhull facility, which serves as a key anchor and stable employer in the northern section of the area.
From a purely numerical standpoint, the gap between market rates and HUD subsidy levels is stark here. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $3,610, yet the prevailing market rent (Zillow ZORI) sits significantly higher at $4,580, creating a cash-flow deficit of $970 per month for voucher holders. With a median home value of $1,385,333 and a median 2BR sale price of $1,467,920, acquisition costs are steep, though the relatively moderate median days on market of 69 days indicates strong buyer liquidity despite the price point.
The tenant base is overwhelmingly renter-occupied at 82.8%, supported by a median household income of $107,506. This income level, while robust, faces intense pressure from the market rents listed above. For voucher holders, demand is driven by the neighborhood’s superior transit connectivity and highly rated public schools, which make Williamsburg a desirable location for families seeking stability. However, the high renter concentration also signals fierce competition for available units, meaning landlords can often secure market-paying tenants easily without navigating Section 8 bureaucracy.
The Section 8 verdict for 11211 is a cautious "hold" for cash-flow investors but a "buy" for those betting on long-term stability. The $970 monthly gap between the 2BR FMR and market rent means voucher payments will not cover standard market leases, requiring significant capital injections from tenants or landlords. Investors should view this neighborhood as an appreciation play rather than a income play, banking on the $1,385,333 median asset value to grow rather than on government subsidies to cover carrying costs.
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.