Section 8 Fair Market Rent (FMR) for ZIP 11225 - 2027

Investment Score for ZIP 11225

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	$2,570
1 Bedroom	$2,710
2 Bedrooms	$2,950
3 Bedrooms	$3,730
4 Bedrooms	$4,090
5 Bedrooms	$4,744
6 Bedrooms	$5,313
7 Bedrooms	$5,738
8 Bedrooms	$6,025

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	$2,710	$604,278	0.45%	F
2BR	$2,950	$1,004,791	0.29%	F
3BR	$3,730	$1,444,663	0.26%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11225 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11225 in Kings County, New York, is set by HUD for 2026. For a two-bedroom apartment, the FMR is $2,900. However, the actual rental market in this area is significantly higher. The Zillow median price for a two-bedroom property is $1,000,606, which translates into a monthly rent that would be much higher than the FMR. Given the price-to-FMR ratio of 28.8x, it is clear that the actual rents far exceed the FMR. This means that tenants with Section 8 vouchers will face significant constraints in finding suitable housing within their budget. Landlords who accept Section 8 vouchers must ensure that their rents do not exceed the FMR, making it challenging to find properties that meet both the tenant's needs and the landlord's financial expectations. #### Affordability & Renter Profile ZIP code 11225 has a population of 58,158, with 80.3% of residents being renters. This indicates a strong demand for rental housing in the area. The median household income is $88,568, but the affordability of housing is a critical issue. The FMR for a two-bedroom unit represents only 39.3% of the median income, suggesting that even without the assistance of Section 8 vouchers, many residents struggle to afford housing. With such a high percentage of renters and limited affordable options, the market is likely to be tight, with competition among renters driving up prices. The high rent-to-income ratio and the significant gap between FMR and actual rents suggest that this is not an oversupplied market. #### Investor Angle From an investor perspective, the ZIP code 11225 presents a challenging environment for cash flow-positive investments at the FMR level. The FMR for a two-bedroom unit is $2,900, while the actual median rent based on the Zillow price-to-rent ratio would be approximately $8,676 per month ($1,000,606 divided by 12 months). This substantial difference between the FMR and the actual market rent makes it difficult for landlords to achieve positive cash flow when accepting Section 8 vouchers. The investment grade for this ZIP code would be low due to the limited number of properties that can be rented at or below the FMR, coupled with the high cost of acquiring rental properties. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as studios and one-bedroom apartments. The FMR for a one-bedroom unit is $2,650, which is still significantly lower than the actual market rent. By targeting these smaller units, investors can potentially find more properties that are within the FMR range, thus improving their chances of attracting Section 8 tenants. 2. **Explore Subsidized Housing Opportunities**: Investors looking to enter the Section 8 market in ZIP code 11225 might benefit from exploring subsidized housing programs. These programs often provide additional incentives and subsidies that can help bridge the gap between the FMR and the actual market rent. Additionally, subsidized housing projects typically have a higher likelihood of securing long-term tenants, which can stabilize cash flows. 3. **Consider Renovation Projects**: Another actionable insight is to look for older properties that might be priced below the current market value due to their condition. By investing in renovations, investors could potentially bring these properties up to market standards while keeping the rent within the FMR range. This approach requires careful financial planning and an understanding of renovation costs, but it can offer a path to profitability in a highly competitive market. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The challenge of finding properties that can be rented at or below the FMR, combined with the high acquisition costs, makes it difficult to achieve positive cash flow. While there are opportunities to explore smaller units or subsidized housing, the overall market conditions in ZIP code 11225 make it less attractive for investors primarily interested in Section 8 vouchers.

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.