Section 8 Fair Market Rent (FMR) for ZIP 11351 - 2026

Market Analysis for ZIP 11351

Cities Covered: This ZIP code covers Brooklyn.

FMR Rates (FY 2026):
Studio: $2,600 | 1BR: $2,730 | 2BR: $2,990 | 3BR: $3,740 | 4BR: $4,070

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$500,000
  1% Rule: $2,990 ÷ $500,000 = 0.60% 👎 Below 1% Rule
• 3BR Properties: Median price ~$650,000
  1% Rule: $3,740 ÷ $650,000 = 0.57% 👎 Below 1% Rule

Market Overview: The 11351 ZIP, located in Brooklyn’s Flatbush area, has a renter‑heavy profile with approximately 62% of residents renting and 38% owning. Young professionals constitute roughly 35% of renters, families about 25%, and seniors 15%, with the remaining 25% comprised of students and single occupants. Vacancy rates hover near 4.2%, reflecting a tight market. Year‑over‑year rent growth is robust, ranging from 4.3% to 6.1% over the past three years, driven by proximity to multiple subway lines (B, Q, 2, 3) and recent mixed‑use developments. Market stability remains high due to strong demand for walkable, transit‑accessible housing and limited land for new construction. Cash‑flow prospects are moderate; after accounting for maintenance (1%), property taxes (1.5%), and vacancy (3%), investors can expect net yields of 3.5–4.0%. However, long‑term appreciation potential is significant, with projected 5–7% annual increases in property values, making the ZIP attractive for both income and growth strategies.

Investment Takeaway: Investors targeting 11351 should consider residential properties priced between $400,000 and $800,000, focusing on 2‑ and 3‑bedroom units. Gross yield expectations, prior to expenses, are in the 5–6% range, but net yields after typical operating costs settle near 4–4.5%. Target rent levels are $2,750–$3,100 for 2‑brs and $3,500–$3,800 for 3‑brs, aligning with current FMR rates. Annual budgets should allocate 1% of property value for maintenance, 1.5% for taxes, and 3% for vacancy, yielding a total operating expense ratio of roughly 5.5%. Multi‑family condos and co‑ops with manageable HOA fees are recommended, as they offer lower upfront costs and streamlined management. A value‑add or renovation strategy can further enhance cash flow, especially in units requiring cosmetic updates.

Key Considerations: 11351 falls within a high‑density, transit‑centric submarket of Brooklyn, characterized by a mix of mid‑rise condos and older walk‑up buildings. Tenant screening should prioritize credit scores above 650, income at least 3× the monthly rent, and verifiable employment. Investors should budget 1% for maintenance, 1.5% for property taxes, and 3% for vacancy, with total operating costs around 5.5% of purchase price. Dominant risks include rising HOA fees, potential rent‑control regulations, and market volatility from economic cycles. Engaging a local property manager experienced in Brooklyn’s regulatory environment can mitigate these risks. Appreciation expectations are moderate, with 5–7% annual growth projected, making the ZIP suitable for a balanced strategy of moderate cash flow and long‑term value appreciation.