Section 8 Fair Market Rent (FMR) for ZIP 11228 - 2027

Investment Score for ZIP 11228

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	$2,550
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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,680	$428,474	0.63%	D
2BR	$2,920	$844,414	0.35%	F
3BR	$3,700	$1,198,671	0.31%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11228 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11228 is set by HUD for the year 2026. For a two-bedroom apartment, the FMR is $2800, which represents 40.2% of the median household income in the area ($83,665). However, the actual rental market in 11228 is significantly higher. The Zillow median price for a two-bedroom home is $839,697, which translates to a monthly rent of approximately $3,500 based on typical rental yields. This means that the actual rents are about 25 times the FMR for a two-bedroom unit, creating a substantial gap between what voucher holders can afford and the market rates. Consequently, voucher holders face significant constraints in finding affordable housing within the ZIP code. #### Affordability & Renter Profile ZIP code 11228 has a population of 42,241, with 44.2% of residents being renters. The occupancy rate stands at 91.8%, indicating a robust demand for housing. Given the high median household income and the fact that the FMR for a two-bedroom unit is only 40.2% of the median income, it suggests that the majority of renters in this area are likely middle-class individuals who can afford market-rate rents. The tight market conditions make it challenging for low-income families to find suitable housing, especially those relying on Section 8 vouchers. The disparity between FMR and actual rents highlights the affordability crisis faced by lower-income households in this ZIP code. #### Investor Angle From an investor’s perspective, the ZIP code presents both opportunities and challenges. The FMR for a two-bedroom unit is $2800, but the actual market rent is around $3,500. This indicates that properties rented at FMR levels would likely generate negative cash flow, given the high costs associated with owning property in New York City. Investors seeking positive cash flow should consider that the market rent far exceeds the FMR, making it difficult to attract Section 8 voucher holders without significant rent subsidies. The investment grade for this ZIP code is relatively low due to the high price-to-FMR ratio and the limited pool of potential tenants who can use Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might consider focusing on smaller units such as studios or one-bedroom apartments. The FMR for a one-bedroom unit is $2550, which is still significantly below the market rent. This could provide a better opportunity to balance the financial burden while attracting tenants who can use vouchers. 2. **Seek Government Subsidies**: To mitigate the financial risk of renting at FMR levels, investors should explore government subsidy programs beyond just Section 8. These programs can help bridge the gap between FMR and market rents, making properties more financially viable. 3. **Consider Mixed-Income Developments**: Developing mixed-income properties where some units are rented at market rates and others are rented at FMR levels could help achieve financial sustainability. This approach allows investors to leverage higher rents from market-rate units to subsidize the lower rents required for Section 8 units. #### Bottom Line Given the high price-to-FMR ratio and the limited number of potential Section 8 voucher holders who can afford the rents in ZIP code 11228, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The tight market and high actual rents make it challenging to operate profitably at FMR levels, and the investment grade is relatively low. Investors should look for areas with a more favorable price-to-FMR ratio and a larger pool of potential Section 8 tenants to ensure financial viability and success.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.