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 | $2,570 |
| 1 Bedroom | $2,700 |
| 2 Bedrooms | $2,940 |
| 3 Bedrooms | $3,720 |
| 4 Bedrooms | $4,080 |
| 5 Bedrooms | $4,733 |
| 6 Bedrooms | $5,301 |
| 7 Bedrooms | $5,725 |
| 8 Bedrooms | $6,011 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,700 | $318,591 | 0.85% | C |
| 2BR | $2,940 | $659,565 | 0.45% | F |
| 3BR | $3,720 | $1,067,321 | 0.35% | F |
U.S. Census Bureau data (2024)
Brooklyn’s 11223 zip code, primarily covering Gravesend and parts of Sheepshead Bay, offers a blend of historic single-family homes and dense mid-rise apartment blocks. It is a family-centric, waterfront community known for its diverse dining scene along Emmons Avenue and direct access to Plum Beach. The area is defined by its strong residential character and proximity to major transit corridors. Coney Island Hospital serves as a significant local institution and major employer, providing a steady economic base and a consistent pool of potential tenants who prioritize living near their workplace for convenience.
From a purely numerical standpoint, the rental math presents a distinct challenge. The FY2024 HUD SAFMR for a 2-bedroom unit is set at $2,650, which lags behind the current market rent of $2,774, creating a negative gap of $124 per month if you rely solely on voucher caps. Meanwhile, acquisition costs remain steep, with a median home value of $1,069,865 and a median 2BR sale price of $660,339. Inventory is not moving rapidly, sitting on the market for a median of 69 days. Because the voucher rate is lower than market rates, standard Section 8 tenants here do not cash-flow relative to market tenants without substantial rent-upside potential or specific subsidy top-ups.
Demand, however, is robust due to the area’s demographic profile. With 63.9% of households renting and a median household income of $63,368, there is a clear need for affordable housing options. Families are drawn to the neighborhood for its highly rated public schools, particularly P.S. 95, and the accessibility provided by the B and Q subway lines, which offer direct commutes to Manhattan. These amenities make the area attractive to voucher holders seeking stability and quality education, ensuring that while the rent ceiling is lower, tenant interest remains high.
The strongest investor angle in 11223 is stability rather than immediate cash-flow. The high renter share combined with institutional anchors like Coney Island Hospital suggests low vacancy risk and consistent occupancy. While the $124 gap between the $2,650 SAFMR and $2,774 market rent limits immediate yield, the $660,339 median entry price for 2-bedroom units offers a foothold in a high-value New York market. Investors should view this as a long-term play on neighborhood stability and appreciation, banking on the area's enduring appeal to families rather than short-term rental premiums.
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.