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 | $2,940 |
| 1 Bedroom | $3,100 |
| 2 Bedrooms | $3,370 |
| 3 Bedrooms | $4,260 |
| 4 Bedrooms | $4,670 |
| 5 Bedrooms | $5,417 |
| 6 Bedrooms | $6,067 |
| 7 Bedrooms | $6,552 |
| 8 Bedrooms | $6,880 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,100 | $644,869 | 0.48% | F |
| 2BR | $3,370 | $930,243 | 0.36% | F |
| 3BR | $4,260 | $1,190,236 | 0.36% | F |
| 4BR | $4,670 | $1,494,493 | 0.31% | F |
| 5BR | $5,417 | $1,808,401 | 0.3% | F |
U.S. Census Bureau data (2024)
ZIP 11221 covers the heart of Bedford-Stuyvesant, a neighborhood defined by its historic brownstones and a strong sense of community identity. Once synonymous with urban blight, the area has undergone significant gentrification while retaining a deep cultural legacy. The local economy is anchored by institutions like the Brooklyn Hospital Center, which provides substantial employment and supports a steady population of healthcare professionals seeking nearby housing. Transit access is robust, with the A and C subway lines offering express rides to Lower Manhattan, making the location highly practical for commuters. Recent developments have focused on preserving the neighborhood's architectural character, maintaining its appeal to long-term residents and newcomers alike.
From a strictly numerical standpoint, 11221 presents a specific arbitrage challenge for voucher holders. The FY2026 2-Bedroom Fair Market Rent (FMR) is set at $3,160. However, current market rents for a 2-bedroom unit sit higher at $3,288, creating a negative gap of $128. This means a standard Section 8 voucher falls short of covering the going rate. Assets are expensive here, with a median home value of $1,082,290 and a median 2-bedroom sales price of $922,443. Properties are moving slowly, sitting on the market for a median of 107 days, indicating that buyers have leverage but sellers are reluctant to lower prices on high-basis assets.
The tenant pool is dense, with 78.8% of households renting. The median household income is $85,736, which is substantial but often struggles against the high cost of living and entry barriers to homeownership given the seven-figure price tags. This income pressure fuels a persistent demand for rental relief and housing vouchers. Families are drawn to the area for amenities like Herbert Von King Park and well-regarded local public schools, which ensures that even if market rents fluctuate, the underlying desire to live in the neighborhood remains strong. The high renter share confirms that landlords are dealing with a primarily tenant-based economy rather than owner-occupiers.
The Section 8 verdict for 11221 leans toward a stability and appreciation play rather than immediate cash flow. Because the FMR trails the market rent by $128, investors relying solely on voucher payments will need to cover a small monthly shortfall or negotiate rents downward. However, the high median home value and the neighborhood's enduring desirability suggest strong long-term appreciation. The ideal investor here is one who can absorb the rent gap to secure a reliable, government-backed tenant in a market where inventory turns over slowly (107 days), prioritizing asset appreciation over aggressive monthly yields.
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.