| Unit Size | FY 2026 FMR |
|---|---|
| Studio (0 Bedroom) | $2,600 |
| 1 Bedroom | $2,730 |
| 2 Bedrooms | $2,990 |
| 3 Bedrooms | $3,740 |
| 4 Bedrooms | $4,070 |
Location: New York, NY
Metro Area: New York, NY HUD Metro FMR Area
Explore Section 8 payment standards in neighboring areas:
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:
Market Overview: Brooklyn’s 11386 ZIP code is a vibrant, densely populated enclave with a renter demographic of approximately 70% versus 30% homeowners. Current vacancy rates hover around 4.2%, reflecting strong demand for rental units. Year‑over‑year rent growth has averaged 3.5% to 4.0% over the past three years, driven by proximity to Manhattan, extensive transit options, and a robust local economy. The market remains highly stable, with a balanced mix of income‑level segments and limited rent‑control exposure. Cash‑flow opportunities are moderate, with gross yields typically between 5% and 6%, but the area offers substantial long‑term appreciation potential, estimated at 4–5% annually, making it attractive for both value‑add and buy‑and‑hold strategies.
Investment Takeaway: Investors targeting 11386 should focus on 2‑BR units priced between $450,000 and $600,000 and 3‑BR units between $600,000 and $800,000. Gross yield expectations are 5–6%, with rental targets set around 1.2× the FY 2026 FMR: $3,600 for 2‑BR and $4,500 for 3‑BR. An annual budget of roughly 4–5% of purchase price should cover maintenance (1%), property taxes (1.5%), and vacancy reserve (2%). Duplexes and multi‑family condos are recommended due to their higher cash‑flow potential and scalability. Value‑add opportunities exist in properties that require cosmetic upgrades or better leasing systems.
Key Considerations: 11386 is a high‑density, mixed‑income market with a significant proportion of short‑term renters. Property owners should implement stringent tenant screening, targeting credit scores above 720 and rental histories of at least two years. Budget allocations should reserve 1% of property value for maintenance, 1.5% for taxes, and 2% for vacancy. Dominant risks include potential rent‑control legislation, high turnover costs, and economic sensitivity to job market fluctuations. Professional property management is advisable to navigate compliance and tenant relations efficiently. Appreciation expectations remain solid, with projected annual gains of 4–5% supported by sustained demand and limited new supply.