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 | $2,550 |
| 1 Bedroom | $2,680 |
| 2 Bedrooms | $2,920 |
| 3 Bedrooms | $3,700 |
| 4 Bedrooms | $4,050 |
| 5 Bedrooms | $4,698 |
| 6 Bedrooms | $5,262 |
| 7 Bedrooms | $5,683 |
| 8 Bedrooms | $5,967 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,680 | $529,384 | 0.51% | F |
| 2BR | $2,920 | $722,784 | 0.4% | F |
| 3BR | $3,700 | $886,971 | 0.42% | F |
| 5BR | $4,698 | $2,047,020 | 0.23% | F |
U.S. Census Bureau data (2024)
ZIP code 11226, covering Flatbush and parts of Midwood in Brooklyn, is a densely populated, predominantly rental neighborhood known for its vibrant Victorian homes and diverse cultural atmosphere. The area is anchored by major institutions like Kingsborough Community College, which provides steady local employment and educational opportunities. Recent development activity has focused on preserving the historic housing stock while introducing new retail corridors, maintaining the area’s reputation as a dynamic, urban hub with excellent transit access via the B and Q subway lines.
From an investment standpoint, the math reveals a challenging spread for voucher holders. The HUD SAFMR for a 2BR unit stands at $2,560, while the projected Full FMR for FY2026 rises to $2,800. However, current market rents (Zillow ZORI) are significantly higher at $2,875, creating a gap of $315 per month between the FY2026 payment standard and market reality. Property values are steep, with a median home value of $792,944 and a specific median 2BR sale price of $722,160. Homes are moving relatively slowly, with a median days on market of 72 days.
The tenant pool is massive, with an 86.0% renter share and a median household income of $81,014. While this income level suggests many residents can afford market rates, the high renter concentration also indicates consistent demand for rental units. Families are drawn to the area for reputable public schools like Midwood High School and the accessibility of Prospect Park. However, local landlord regulations in New York City are strict, requiring investors to be prepared for rigorous compliance standards.
The Section 8 verdict for 11226 leans toward appreciation and stability rather than immediate cashflow. With the FY2026 FMR lagging behind current market rents by $315, relying solely on voucher payments limits immediate income potential relative to the high acquisition cost of $722,160 for a 2BR property. Investors should target this market for long-term equity growth and the security of a low-vacancy environment, rather than maximizing monthly yield.
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.