Section 8 Fair Market Rent (FMR) for ZIP 11238 - 2027

Investment Score for ZIP 11238

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	$3,890
1 Bedroom	$4,100
2 Bedrooms	$4,460
3 Bedrooms	$5,640
4 Bedrooms	$6,190
5 Bedrooms	$7,180
6 Bedrooms	$8,042
7 Bedrooms	$8,685
8 Bedrooms	$9,119

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$4,100	$858,224	0.48%	F
2BR	$4,460	$1,338,152	0.33%	F
3BR	$5,640	$1,981,433	0.28%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11238 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11238 is significantly lower than the actual rents charged in the area. For instance, the FMR for a two-bedroom apartment in 2026 is set at $4,160, which represents only 37.1% of the median household income of $134,523. However, the Zillow median price for a two-bedroom home in this ZIP code is $1,293,854, indicating that the actual rent for such units could be much higher. The price-to-FMR ratio of 25.9x suggests that landlords can charge up to 25.9 times the FMR, making it challenging for Section 8 voucher holders to find affordable housing. This high ratio means that even if a landlord were to charge the maximum allowable rent under the FMR guidelines, it would still be far below the market rate. Consequently, voucher holders face significant constraints in finding suitable housing within their budget. #### Affordability & Renter Profile ZIP code 11238 has a high renter population percentage of 72.3%, indicating that the majority of residents are renters rather than homeowners. Given the median household income of $134,523, most residents can afford market-rate rents, but the high occupancy rate of 92.0% suggests that there is a strong demand for rental properties. The tight market conditions mean that there is little room for oversupply, and any new rental units are likely to be quickly occupied. Additionally, the high median income indicates that residents have the financial capability to pay higher rents, which further supports the notion that the market is competitive and not oversupplied. #### Investor Angle From an investor perspective, the ZIP code 11238 presents a mixed picture. While the FMRs are relatively low compared to the actual market rates, the high price-to-FMR ratio of 25.9x implies that investors who focus on Section 8 vouchers will struggle to achieve positive cash flow. The actual rents commanded by landlords are likely to be several times higher than the FMRs, making it difficult for investors to find properties that offer both positive cash flow and alignment with Section 8 guidelines. In terms of investment grade, the high demand and limited supply suggest that properties in this ZIP code could be considered stable investments, but the constraints imposed by Section 8 voucher dynamics make them less attractive for investors seeking immediate returns. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high FMR for larger units (e.g., 3BR and 4BR), investors might consider acquiring properties with three or four bedrooms. These units have FMRs of $5,210 and $5,660 respectively, which are closer to the market rate and thus more likely to provide positive cash flow. 2. **Target Lower-Income Residents**: Investors should target areas within ZIP code 11238 where the median income is lower than $134,523. This could help in attracting tenants who rely on Section 8 vouchers while still maintaining reasonable rents. For example, a property with a rent of $4,160 for a two-bedroom unit would be more accessible to voucher holders and could still generate positive cash flow if the acquisition cost is aligned with the FMR. #### Bottom Line For investors focusing on Section 8 vouchers, ZIP code 11238 is not recommended due to the high price-to-FMR ratio and the challenges in finding properties that align with both the voucher program and market demands. The recommendation is to **Skip** this ZIP code for Section 8-focused investments. Instead, investors should look for areas with lower ratios and more manageable rents relative to the FMRs to ensure positive cash flow and compliance with the voucher program. --- This analysis is based solely on the provided data and does not include any external sources or assumptions beyond the given figures.

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.