Section 8 Fair Market Rent (FMR) for ZIP 11224 - 2027

Investment Score for ZIP 11224

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,280
1 Bedroom	$2,390
2 Bedrooms	$2,620
3 Bedrooms	$3,280
4 Bedrooms	$3,570
5 Bedrooms	$4,141
6 Bedrooms	$4,638
7 Bedrooms	$5,009
8 Bedrooms	$5,259

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,390	$349,770	0.68%	D
2BR	$2,620	$484,817	0.54%	F
3BR	$3,280	$706,445	0.46%	F
4BR	$3,570	$773,567	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11224 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11224, as determined by HUD for 2026, is set at $2510 for a two-bedroom apartment. This figure represents 69.0% of the median household income in the area, which stands at $43,648. However, the actual rental market in 11224 is significantly higher, with the Zillow median price for a two-bedroom apartment being $494,107. The price-to-FMR ratio for a two-bedroom unit is 16.4x, indicating that the actual market rent is much higher than the FMR. This discrepancy places significant constraints on voucher holders. For instance, a voucher holder would find it challenging to secure a two-bedroom apartment at the FMR rate because the actual market rent is far above the FMR. This makes it difficult for voucher recipients to find suitable housing, especially since the majority of the population in 11224 (72.7%) are renters. #### Affordability & Renter Profile ZIP code 11224 has a high renter percentage, with 72.7% of the population renting their homes. This suggests a strong demand for rental properties in the area. The occupancy rate of 93.9% further supports this conclusion, indicating that the rental market is tight and there is little vacancy. Given the median household income of $43,648, many residents likely struggle to afford market-rate rentals, particularly for larger units like three-bedroom ($3120) and four-bedroom ($3370) apartments. The high price-to-FMR ratio of 16.4x for two-bedroom units highlights the affordability gap in the market. It means that even if a tenant were to receive a voucher covering the FMR, they would still face substantial out-of-pocket expenses to cover the difference between the FMR and the actual market rent. This tight market condition could lead to increased competition among renters and potentially higher rents. #### Investor Angle From an investor perspective, the ZIP code 11224 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2510, which is significantly lower than the Zillow median price of $494,107. However, the actual market rent is likely closer to the Zillow median price, given the high price-to-FMR ratio. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental rates and the potential for finding tenants willing to pay those rates. Since the market rent is so much higher than the FMR, it is unlikely that an investor would be able to achieve cash flow positivity solely based on FMR rates. The high price-to-FMR ratio indicates that the market is not aligned with the FMR, making it difficult for investors to rely on FMR alone for profitability. The investment grade for this ZIP code would be considered low due to the significant disparity between FMR and market rent. Investors should be cautious about relying on Section 8 vouchers as the sole source of rental income, as the tight market conditions and high prices suggest that finding tenants willing to accept FMR rates may be challenging. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments where the FMR is $2260. This is still a significant portion of the median household income (approximately 51.8%), but it may be easier to find tenants willing to pay these rates compared to larger units. 2. **Consider Alternative Funding Sources**: Due to the tight market and high prices, investors might want to consider alternative funding sources or subsidies beyond just Section 8 vouchers. This could include state or local housing assistance programs, which may offer additional support to bridge the gap between FMR and market rent. 3. **Evaluate Property Value**: Before investing, carefully evaluate the property value against the Zillow median price. A two-bedroom apartment priced at $494,107 may not generate sufficient rental income at FMR rates to justify the purchase price. Investors should look for properties that are below the Zillow median price to ensure better cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 11224 is to **skip** this market. The significant disparity between FMR and actual market rents, coupled with the high price-to-FMR ratio, makes it challenging to achieve cash flow positivity based solely on FMR rates. Additionally, the tight market conditions suggest that finding tenants willing to accept FMR rates may be difficult. Investors should consider other ZIP codes with a more favorable alignment between FMR and market rents for better returns and ease of management.

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.