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 | $2,600 |
| 1 Bedroom | $2,740 |
| 2 Bedrooms | $2,980 |
| 3 Bedrooms | $3,770 |
| 4 Bedrooms | $4,130 |
| 5 Bedrooms | $4,791 |
| 6 Bedrooms | $5,366 |
| 7 Bedrooms | $5,795 |
| 8 Bedrooms | $6,085 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,740 | $292,074 | 0.94% | C |
| 2BR | $2,980 | $552,331 | 0.54% | F |
| 3BR | $3,770 | $929,513 | 0.41% | F |
| 4BR | $4,130 | $1,083,528 | 0.38% | F |
U.S. Census Bureau data (2024)
ZIP code 11229 covers the Gravesend and Homecrest sections of Brooklyn, offering a quiet residential alternative to the borough’s denser core. Known for its single-family Tudors and brick rowhouses, the neighborhood appeals to families seeking stability. The local economy benefits significantly from the presence of Maimonides Medical Center, a major employer and hospital system located just north of the area, which provides a steady base of healthcare professionals seeking nearby housing. The streets feature a mix of well-kept homes and active commercial strips like Avenue U, reinforcing the area's reputation as a working-to-middle-class stronghold with strong community ties.
From a purely numerical standpoint, the rental market in this ZIP presents a tight arbitrage opportunity. The HUD Fair Market Rent for a 2-bedroom unit in FY2024 is set at $2,610, while current market rents (Zillow ZORI) sit slightly lower at $2,556, creating a narrow premium of $54 for voucher holders. Investors looking at the FY2026 ladder will note rates rise to $2,860 for two bedrooms, offering potentially better long-term yields. Asset values are substantial, with a median home value of $767,700 and a specific median 2BR sale price of $543,012. However, liquidity is a consideration, as properties sit on the market for a median of 75 days, indicating a somewhat slower sales velocity compared to hotter NYC markets.
Demand fundamentals remain robust due to the area's high renter share of 53.1%. With a median household income of $70,603, many working families fall within the income thresholds that make Housing Choice Vouchers a critical bridge to affordability. This demand is supported by access to highly-rated public schools within District 22 and convenient transit options via the B and Q subway lines, which connect residents to Manhattan in under an hour. These amenities make 11229 a desirable location for tenants who prioritize space and education over the nightlife of downtown Brooklyn.
For Section 8 investors, 11229 represents a stability play rather than a quick-flip market. The strongest angle here is long-term tenant retention driven by the neighborhood's family-friendly character and school quality. While the current gap between market rent and SAFMR is modest, the projected increase to $2,860 in FY2026 improves the cash-flow outlook. Investors should target 3- and 4-bedroom units where the FMR jumps to $3,580 and $3,890 respectively, capitalizing on the scarcity of larger family apartments in this parts of Brooklyn.
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.