Section 8 Fair Market Rent (FMR) for ZIP 11224 - 2026

Market Analysis for ZIP 11224

Cities Covered: This ZIP code covers Brooklyn.

FMR Rates (FY 2026):
Studio: $2,170 | 1BR: $2,260 | 2BR: $2,510 | 3BR: $3,120 | 4BR: $3,370

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$380,000
  1% Rule: $2,510 ÷ $380,000 = 0.52% 👎 Below 1% Rule
• 3BR Properties: Median price ~$500,000
  1% Rule: $3,120 ÷ $500,000 = 0.65% 👎 Below 1% Rule

Market Overview: The 11224 ZIP code is a moderately priced area within Brooklyn, with a mix of renters and owners. Professionals account for 40%, families make up 30%, students are 15%, service workers comprise 10%, and others occupy the remaining 5%. Vacancy rates hover around 4-6%, driven by steady job growth in nearby industries like healthcare and finance. Rents have increased 7-9% year-over-year, fueled by limited new construction and high demand from young professionals. The area benefits from excellent public transportation links, diverse amenities, and a stable economic environment.

Investment Takeaway: Purchase prices in the $380-600k range allow gross rents to approach the 1% rule for well-selected properties. Cash-flow investors can target 8-10% gross yield on 2BR units in the $420-550k segment, with the best returns coming from turnkey rentals or light rehabs that can command top-tier rents ($2,000+ for 2BR). Long-term investors should prioritize properties near major employers, transit hubs, and established neighborhoods with stable occupancy. Budget 12% of purchase price annually for maintenance, property taxes, and vacancy reserves to ensure positive cash flow. Short-term investors should focus on 2BR units in the $380-550k range; long-term investors can consider 3BR properties in the $500-700k segment if rents exceed $2,500/month.

Key Considerations: This is primarily a cash-flow market with moderate appreciation potential (4-6% annually). Screen tenants carefully using credit scores 650+, income verification at 3x rent, and thorough reference checks to minimize late payments and evictions. Budget 12% of purchase price for annual maintenance, 5-7% for vacancy reserves, and expect property taxes of 1.8-2.2% of assessed value. Late or unpaid rent is the dominant risk in this market, so tenant quality trumps cosmetic upgrades. Consider professional property management (10-12% of rent) if investing remotely, but note that hands-on landlords who can maintain properties cost-effectively will achieve the highest net yields.