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 | $2,850 |
| 1 Bedroom | $3,000 |
| 2 Bedrooms | $3,270 |
| 3 Bedrooms | $4,140 |
| 4 Bedrooms | $4,540 |
| 5 Bedrooms | $5,266 |
| 6 Bedrooms | $5,898 |
| 7 Bedrooms | $6,370 |
| 8 Bedrooms | $6,689 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,000 | $526,885 | 0.57% | F |
| 2BR | $3,270 | $850,399 | 0.38% | F |
| 3BR | $4,140 | $1,369,893 | 0.3% | F |
U.S. Census Bureau data (2024)
New York’s 11218 ZIP code, primarily comprising the Kensington and Windsor Terrace neighborhoods, offers a dense, residential feel distinct from the frenetic pace of nearby Manhattan. This area is characterized by pre-war co-ops, brick row houses, and a diverse array of local eateries along Coney Island Avenue and Church Avenue. A defining anchor here is Prospect Park, which borders the northern edge, providing significant green space that drives long-term tenant retention. Major institutions such as Maimonides Medical Center serve as critical employment hubs, ensuring a steady stream of healthcare professionals seeking nearby housing options.
From a financial perspective, the math reveals a challenging spread for voucher units. The FY2026 Fair Market Rent (FMR) for a 2-bedroom unit is set at $3,190. However, current market data shows the Zillow Observed Rent Index (ZORI) for a 2-bedroom is $3,085. While the FMR exceeds the market rent by $105, this tight margin leaves little room for premiums. Investors must also contend with a high cost of entry, with a median home value of $937,591 and a specific median 2BR sales price of $828,713. Properties are moving relatively slowly, sitting on the market for a median of 93 days, indicating buyers have leverage in negotiations.
The tenant base is robust, with 61.0% of the population renting. Despite a median household income of $97,366, housing costs remain high enough that a significant portion of the workforce seeks subsidized options. The neighborhood’s appeal is bolstered by access to the F and G subway lines, facilitating commutes to Manhattan, and the presence of highly rated public schools like P.S. 230. These amenities attract families who may utilize Housing Choice Vouchers, suggesting that while rents are capped by FMR, demand for quality units in safe school districts remains consistent.
The Section 8 verdict for 11218 leans toward stability and appreciation rather than aggressive cash flow. With the FMR of $3,190 barely exceeding the market rent of $3,085, the immediate dollar gap is insufficient to justify high acquisition prices based solely on yield. Instead, the strongest angle is the area's institutional stability—driven by major employers like Maimonides—and the enduring draw of Prospect Park. Investors should view this as a long-term hold where voucher payments provide a safety net against vacancy, rather than a high-cash-flow play.
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.