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 | $2,720 |
| 1 Bedroom | $2,870 |
| 2 Bedrooms | $3,120 |
| 3 Bedrooms | $3,950 |
| 4 Bedrooms | $4,330 |
| 5 Bedrooms | $5,023 |
| 6 Bedrooms | $5,626 |
| 7 Bedrooms | $6,076 |
| 8 Bedrooms | $6,380 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,870 | $348,681 | 0.82% | C |
| 2BR | $3,120 | $550,808 | 0.57% | F |
| 3BR | $3,950 | $1,049,849 | 0.38% | F |
| 4BR | $4,330 | $1,458,686 | 0.3% | F |
| 5BR | $5,023 | $2,029,865 | 0.25% | F |
U.S. Census Bureau data (2024)
ZIP code 11230, covering Midwood and parts of Flatbush in Brooklyn, is characterized by a quiet, residential atmosphere with a high density of pre-war co-ops and single-family brick homes. The neighborhood retains a strong family-centric vibe, anchored significantly by the presence of Brooklyn College, which serves as a major local institution and draws students and faculty to the area. Transit accessibility is solid, with multiple subway lines facilitating commutes to Manhattan, while nearby Kings Highway offers a robust commercial strip of local retail and dining options.
From a financial perspective, the data presents a clear arbitrage opportunity for voucher holders. The HUD SAFMR for a 2-bedroom unit is $2,750, which exceeds the current market rent (Zillow ZORI) of $2,633 by $117. However, looking forward to the FY2026 Fair Market Rent ladder, a 2-bedroom rises to $3,050, widening the spread to $417 above current market rates. Investors should note the high cost of entry, with a median home value of $914,564 and a median 2BR sale price of $560,006, though the area carries a slower turnover with a median of 145 days on market.
Demand fundamentals are exceptionally strong here, as 71.6% of households are renters. With a median household income of $70,027, many working families are likely cost-burdened by market rates, driving consistent interest in the Housing Choice Voucher program. The neighborhood’s appeal is bolstered by access to highly-rated public schools and the stability associated with the academic community, creating a tenant pool that values long-term occupancy.
The Section 8 verdict for 11230 is bullish on stability and cashflow. The gap between the FY2026 FMR ($3,050) and market rents ($2,633) provides a comfortable cushion for investors, ensuring voucher payments cover market costs while offering potential upside. Given the high renter share and institutional anchors like Brooklyn College, this area is ideal for investors seeking reliable, government-backed income in a proven residential Brooklyn market.
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.