Section 8 Fair Market Rent (FMR) for ZIP 11237 - 2027

Investment Score for ZIP 11237

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	$2,850
1 Bedroom	$3,000
2 Bedrooms	$3,270
3 Bedrooms	$4,140
4 Bedrooms	$4,540
5 Bedrooms	$5,266
6 Bedrooms	$5,898
7 Bedrooms	$6,370
8 Bedrooms	$6,689

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$3,270	$948,414	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11237 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11237, as of 2026, is set at $3020 for a two-bedroom unit. This represents 42.5% of the median household income of $85,196, indicating that it is a relatively affordable rent for voucher holders compared to the local income levels. However, the actual rental market is significantly more expensive. The Zillow median price for a two-bedroom unit is $925,385, which translates to a price-to-FMR ratio of 25.5x. This means that the typical market rent for a two-bedroom unit would be approximately $3020 * 25.5 = $77,110 per month, far exceeding the FMR. Therefore, voucher holders face significant constraints in finding units that fall within their budget, as landlords may be reluctant to accept vouchers due to the high disparity between FMR and market rents. #### Affordability & Renter Profile ZIP code 11237 has a population of 45,334, with 87.8% of residents being renters. This indicates a strong demand for rental properties in the area. Given the high rent-to-income ratio and the fact that 87.8% of the population are renters, it suggests that this is a tight market where affordability is a critical issue. The occupancy rate of 95.0% further supports the notion that there is little excess supply, making it challenging for renters, especially those relying on Section 8 vouchers, to find suitable housing. The median household income of $85,196 places this ZIP code in a middle-to-upper-middle-class bracket, but the high rent-to-income ratio implies that many residents, particularly those with lower incomes, struggle to afford housing. #### Investor Angle From an investor's perspective, the ZIP code 11237 presents a mixed picture. The FMR for a two-bedroom unit is $3020, but the actual market rent is estimated to be around $77,110 per month based on the price-to-FMR ratio. This means that landlords who accept Section 8 vouchers will likely see a significant reduction in potential rental income. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing a rental property. These include mortgage payments, property taxes, insurance, maintenance, and other operating costs. Assuming a conservative estimate of 75% of the Zillow median price as the monthly rental income ($77,110), and considering that the average operating costs might be around 50% of the rental income, the net cash flow would still be substantial. However, at FMR rates, the cash flow would be negative unless the property is debt-free or has very low operating costs. Given the high price-to-FMR ratio, the investment grade for this ZIP code is low for Section 8-focused investors. The primary challenge is the limited pool of tenants who can afford the FMR rates, leading to a higher risk of vacancy and lower returns on investment compared to the broader rental market. #### Specific Actionable Insights 1. **Targeting Affordable Units**: Investors should focus on acquiring properties that are already priced below the market average but above the FMR. For instance, targeting properties priced at around $3500-$4000 for a two-bedroom unit could provide a balance between attracting Section 8 tenants and maintaining a reasonable profit margin. 2. **Government Programs and Incentives**: Utilizing government programs such as tax credits, grants, or subsidies designed to support affordable housing can help offset the lower rental income from accepting Section 8 vouchers. This could make the investment more viable financially. 3. **Property Location and Condition**: Given the tight market, properties in prime locations or those that require minimal renovations may have a better chance of attracting Section 8 tenants while also potentially commanding slightly higher rents. For example, a well-maintained property near public transportation or amenities could justify a rent of $3200-$3500 for a two-bedroom unit, which is still below the market average but above the FMR. #### Bottom Line For Section 8-focused investors, ZIP code 11237 is a challenging market due to the high disparity between FMR and actual market rents. The recommendation is to **Skip** this ZIP code for now, unless you can find properties that are significantly below market value but still above the FMR. The tight market and high rent-to-income ratio make it difficult to achieve positive cash flow solely through Section 8 vouchers without additional financial support or strategic location advantages.

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.