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 | $2,310 |
| 1 Bedroom | $2,430 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,350 |
| 4 Bedrooms | $3,680 |
| 5 Bedrooms | $4,269 |
| 6 Bedrooms | $4,781 |
| 7 Bedrooms | $5,163 |
| 8 Bedrooms | $5,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,430 | $476,619 | 0.51% | F |
| 2BR | $2,650 | $628,058 | 0.42% | F |
| 3BR | $3,350 | $986,015 | 0.34% | F |
U.S. Census Bureau data (2024)
New York, NY 11220 covers the Sunset Park neighborhood, a dynamic Southwest Brooklyn area defined by its heavy industrial waterfront and vibrant residential blocks. The local economy is anchored by significant logistics and manufacturing operations, including the sprawling Industry City complex, which serves as a major employer and cultural hub. This neighborhood offers a dense urban environment with convenient transit access via the D, N, and R subway lines, connecting tenants quickly to Lower Manhattan and Downtown Brooklyn.
For investors analyzing the Section 8 math, the data reveals a tight spread between subsidies and the private market. The FY2026 Fair Market Rent for a 2-bedroom unit is $2,590, while the current market rent sits at $2,658, resulting in a gap of $68 that landlords must absorb if they rely strictly on the voucher limit. With median home values at $957,958 and a 2-bedroom median sale price of $641,596, entry costs are substantial, though the area maintains a brisk pace with properties moving in a median of 43 days.
Demand fundamentals remain robust due to a demographic composition heavily skewed toward renters. The area boasts a 73.3% renter share alongside a median household income of $69,883, suggesting a strong need for affordable housing solutions and high participation in the voucher program. Families are often drawn to the neighborhood by amenities like the flagship Sunset Park branch of the Brooklyn Public Library and well-regarded local schools such as PS 172, which enhance long-term tenant retention.
The verdict for 11220 leans toward stability and appreciation rather than immediate cash-flow maximization. While the $68 gap in 2-bedroom rents limits instant yield, the high renter share and rapid 43-day days-on-market metric indicate consistent demand and low vacancy risk. Investors should view this as a play on market resilience, where the premium asset value offsets the modest rental concession required to accept Section 8 tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.