Section 8 Fair Market Rent (FMR) for ZIP 11374 - 2027

Investment Score for ZIP 11374

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	$3,090
1 Bedroom	$3,250
2 Bedrooms	$3,540
3 Bedrooms	$4,480
4 Bedrooms	$4,910
5 Bedrooms	$5,696
6 Bedrooms	$6,380
7 Bedrooms	$6,890
8 Bedrooms	$7,235

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	$3,250	$327,478	0.99%	C
2BR	$3,540	$483,985	0.73%	D
3BR	$4,480	$946,979	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11374 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11374 is set by HUD for 2026, with specific figures for different unit types. For a two-bedroom apartment, the FMR is $3600, which represents 47.7% of the median household income of $90,631. This suggests that the FMR is reasonably aligned with the local economic conditions. However, the actual rental prices in the area can be significantly higher. The Zillow median price for a two-bedroom home is $471,719, which translates to a monthly rent of approximately $3931 based on a typical mortgage payment (assuming a 4.5% interest rate and a 20-year amortization period). This means that the actual rent for a two-bedroom unit is about $331 above the FMR, indicating a constraint for voucher holders who may struggle to find units within their budget. #### Affordability & Renter Profile ZIP code 11374 has a high renter population of 58.2%, suggesting a strong demand for rental properties. The occupancy rate of 92.8% indicates that the market is relatively tight, with most available units being occupied. Given the median household income of $90,631, the majority of residents are likely middle-class individuals and families who can afford higher rents but may still benefit from the Section 8 program. The price-to-FMR ratio of 10.9x for a two-bedroom unit highlights the significant gap between market rates and the FMR, making it challenging for low-income renters to find affordable housing without assistance. This tight market condition could lead to increased competition among tenants and landlords, potentially driving up rents further. #### Investor Angle From an investor perspective, the ZIP code 11374 presents both opportunities and challenges. The FMR for a two-bedroom unit is $3600, while the actual average rent is around $3931. This implies that investors would need to ensure that their rental properties are priced competitively to attract Section 8 voucher holders. Additionally, the high price-to-FMR ratio of 10.9x suggests that the market is overpriced relative to the FMR, which could affect cash flow positively if investors can secure tenants willing to pay market rates. However, the challenge lies in finding tenants who can only afford the FMR, as they might face difficulties in securing units due to the high market prices. The investment grade for this ZIP code can be considered moderate to high, given the strong demand for rental properties and the high occupancy rate. However, investors should be cautious about relying solely on Section 8 vouchers, as the gap between FMR and market rates could limit the pool of potential tenants. Investors might want to consider diversifying their tenant base to include those who can pay market rates. #### Specific Actionable Insights 1. **Targeted Rental Pricing**: Investors should aim to price their units slightly below the market rate but above the FMR to attract a mix of Section 8 voucher holders and other renters. A reasonable target might be around $3700-$3800 per month for a two-bedroom unit. This pricing strategy would help maximize occupancy while still providing a competitive advantage over market rates. 2. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units like one-bedroom apartments might be more attractive to Section 8 voucher holders. The FMR for a one-bedroom unit is $3280, which is significantly lower than the Zillow median price for a two-bedroom unit. Investors could consider converting larger units into smaller ones to better align with the FMR and increase the likelihood of attracting Section 8 tenants. 3. **Improving Property Value**: Since the market is tight and rents are high, there is potential for increasing property values through renovations and improvements. Investors could focus on upgrading properties to meet the needs of middle-class renters who are willing to pay higher rents. This could involve adding amenities such as modern kitchens, updated bathrooms, and energy-efficient appliances. #### Bottom Line For Section 8-focused investors, ZIP code 11374 presents a mixed scenario. While there is a strong demand for rental properties and a high occupancy rate, the significant gap between FMR and market rates poses a challenge. Therefore, the recommendation for investors is to **Hold** this ZIP code. Investors should carefully evaluate their rental pricing strategies and consider targeting smaller units to better align with the FMR. Additionally, focusing on property improvements to attract a broader range of tenants could help mitigate the risks associated with relying solely on Section 8 vouchers. Overall, the market dynamics suggest that while there are opportunities, they require strategic planning and execution to be successful.

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.