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 | $3,410 |
| 1 Bedroom | $3,590 |
| 2 Bedrooms | $3,910 |
| 3 Bedrooms | $4,950 |
| 4 Bedrooms | $5,420 |
| 5 Bedrooms | $6,287 |
| 6 Bedrooms | $7,041 |
| 7 Bedrooms | $7,604 |
| 8 Bedrooms | $7,984 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,590 | $767,856 | 0.47% | F |
| 2BR | $3,910 | $1,105,843 | 0.35% | F |
| 3BR | $4,950 | $1,484,655 | 0.33% | F |
| 5BR | $6,287 | $2,471,979 | 0.25% | F |
U.S. Census Bureau data (2024)
Bedford-Stuyvesant, particularly the 11216 ZIP code, has evolved into one of Brooklyn’s most desirable residential enclaves, characterized by historic brownstones and a vibrant, community-driven atmosphere. The neighborhood benefits from excellent connectivity, with the A and C subway lines offering swift access to Manhattan, making it a practical choice for working professionals and families. Local landmarks such as the Weeksville Heritage Center underscore the area's deep cultural roots, while the influx of trendy cafes along Fulton Street signals ongoing economic revitalization and strong consumer spending power within the local population.
From a purely quantitative standpoint, 11216 presents a challenging environment for voucher holders compared to market realities. The FY2026 Fair Market Rent (FMR) for a 2-bedroom unit is $3,670, while the Zillow Observed Rent Index (ZORI) indicates a market rate of $3,425, resulting in a favorable spread of $245 in favor of the voucher. However, acquiring assets here requires significant capital, with the median home value sitting at $1,221,107 and a median 2BR sales price of $1,065,435. Properties are moving relatively slowly, with a median of 88 days on market, suggesting that sellers may need patience to close deals at these valuation levels.
Demand remains robust, driven by a demographic that is 78.7% renters and boasts a median household income of $101,277. This high income and renter density suggest that many local tenants pay market rates without assistance, yet there is a viable pool of voucher holders seeking stability in this high-cost area. Families are drawn to the neighborhood’s amenities, including access to highly-rated public schools like P.S. 262, and the abundance of parks, which sustains long-term occupancy rates. The combination of affluent residents and working-class voucher holders creates a diverse, resilient tenant base.
The Section 8 investment verdict for 11216 leans heavily toward appreciation and stability rather than immediate cash flow. While the $245 gap between the 2BR FMR ($3,670) and market rent ($3,425) helps, the high entry price of $1,221,107 compresses yields. Investors should view this neighborhood as a defensive play where the high median income and strong school ratings protect property values, making it ideal for long-term hold strategies rather than quick-turn arbitrage.
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.