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 | $2,480 |
| 1 Bedroom | $2,610 |
| 2 Bedrooms | $2,840 |
| 3 Bedrooms | $3,590 |
| 4 Bedrooms | $3,940 |
| 5 Bedrooms | $4,570 |
| 6 Bedrooms | $5,118 |
| 7 Bedrooms | $5,527 |
| 8 Bedrooms | $5,803 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,610 | $604,747 | 0.43% | F |
| 2BR | $2,840 | $807,130 | 0.35% | F |
| 3BR | $3,590 | $1,054,312 | 0.34% | F |
| 4BR | $3,940 | $1,414,778 | 0.28% | F |
| 5BR | $4,570 | $1,597,837 | 0.29% | F |
U.S. Census Bureau data (2024)
ZIP code 11233, encompassing parts of Bedford-Stuyvesant in Brooklyn, is a neighborhood defined by historic brownstones and a strong sense of community identity. It is a residential area where local culture anchors the streets, bolstered by the presence of major institutions. Notably, the sprawling Interfaith Medical Center serves as a key employer and healthcare hub within the vicinity, providing steady economic activity and a consistent base of potential renters who value proximity to work.
From a numerical perspective, the rental math reveals a tight spread. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $2,730, while the current market rent reaches $2,970, leaving a relatively narrow gap of $240. For investors, the median home value sits at $1,011,666, with a median 2BR sale price of $826,358. These homes are moving slowly, evidenced by a median of 88 days on market. Because the market rate exceeds the FMR, voucher tenants do not immediately cash-flow here at the top end of the market; investors must rely on the guaranteed government payments rather than upside potential above market rates.
The tenant pool is deep, with a renter share of 76.3% and a median household income of $62,411. This income level suggests that while the area is gentrifying, a significant portion of the population still relies on subsidized housing to afford the $2,730 FMR benchmark. Demand is further supported by neighborhood amenities, including well-regarded local public schools and robust transit options, such as the A and C subway lines, which provide direct access to Manhattan and make the location attractive for working families.
The Section 8 verdict for 11233 leans heavily toward stability over aggressive appreciation. The primary investor angle here is the reliability of payments in a market where high entry costs ($1,011,666 median value) meet slower sales velocity (88 days). With the vast majority of residents renting and a local institution like Interfaith Medical Center driving employment, the area offers a defensive play. The specific data backing this call is the combination of a 76.3% renter share ensuring a constant pool of applicants and the 88-day DOM indicating a less volatile, long-term holding environment rather than a quick-flip 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.