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 | $2,520 |
| 1 Bedroom | $2,650 |
| 2 Bedrooms | $2,890 |
| 3 Bedrooms | $3,660 |
| 4 Bedrooms | $4,010 |
| 5 Bedrooms | $4,652 |
| 6 Bedrooms | $5,210 |
| 7 Bedrooms | $5,627 |
| 8 Bedrooms | $5,908 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,650 | $344,479 | 0.77% | D |
| 2BR | $2,890 | $603,024 | 0.48% | F |
| 3BR | $3,660 | $893,840 | 0.41% | F |
| 4BR | $4,010 | $1,194,087 | 0.34% | F |
U.S. Census Bureau data (2024)
Zip code 11235, known as Brighton Beach and Manhattan Beach, offers a classic seaside urban experience characterized by high-density co-ops and vibrant boardwalk culture. The neighborhood is a major destination for Russian-speaking immigrants and features a robust commercial district along Brighton Beach Avenue. A key institutional anchor here is Maimonides Medical Center, one of Brooklyn's largest employers, which provides a steady stream of potential tenants and supports the local service economy.
From a strictly numerical standpoint, the gap between market rates and HUD subsidies is the central story. The HUD SAFMR for a 2-bedroom unit is $2,700, while current market rents sit at $2,845, leaving a negative gap of $145. Investors considering acquisition should note the median home value is $603,623, with a median 2BR sale price of $604,013. Assets are moving slowly, with a median of 102 days on market. Based on these figures, a standard Section 8 voucher does not quite cover market parity for a two-bedroom, meaning cash-flow must be carefully modeled against this deficit.
Despite the rent gap, tenant demand is bolstered by the area's high renter share of 65.2% and a median household income of $59,661. For households earning the median income, the $2,700 SAFMR represents roughly 54% of gross income, suggesting a strong necessity for rental assistance in this price bracket. The neighborhood remains desirable due to the B and Q subway lines offering express access to Manhattan, as well as highly-rated public schools like PS 225, which attracts families seeking stability.
The Section 8 verdict for 11235 leans toward stability rather than immediate high-yield cashflow. While the $145 gap requires absorption, the high barrier to entry indicated by $603,623 home values suggests long-term appreciation potential. The investor angle here is betting on the durability of a high-density, transit-rich neighborhood where the voucher floor provides a reliable backstop against vacancies, even if it falls slightly short of peak market rents.
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.