Section 8 Fair Market Rent (FMR) for ZIP 11413 - 2027

Investment Score for ZIP 11413

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	$2,770
1 Bedroom	$2,910
2 Bedrooms	$3,170
3 Bedrooms	$4,010
4 Bedrooms	$4,400
5 Bedrooms	$5,104
6 Bedrooms	$5,716
7 Bedrooms	$6,173
8 Bedrooms	$6,482

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	$3,170	$693,014	0.46%	F
3BR	$4,010	$747,332	0.54%	F
4BR	$4,400	$809,693	0.54%	F
5BR	$5,104	$916,306	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11413 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11413 is set by HUD for 2026 as follows: - 0BR: $2710 - 1BR: $2850 - 2BR: $3120 (which is 31.6% of the median household income of $118,440) - 3BR: $3910 - 4BR: $4240 To understand how these figures compare to actual rents, we need to consider that the Zillow median price for a 2BR property is $678,539. This indicates that the rental market is highly competitive and expensive relative to the FMR. For instance, the price-to-FMR ratio for a 2BR unit is 18.1x, which means that the average rent in the area is significantly higher than the FMR. This creates several constraints for voucher holders: - They may struggle to find units within their budget, especially since the FMR is much lower than the actual market rent. - Landlords might be less inclined to accept vouchers due to the high disparity between the FMR and market rent, leading to limited options for voucher holders. #### Affordability & Renter Profile ZIP code 11413 has a population of 45,965, with 26.4% being renters. The occupancy rate stands at 95.0%, indicating a tight rental market with little vacancy. Given the median household income of $118,440, it’s clear that the majority of residents can afford higher rents, but those relying on Section 8 vouchers face significant challenges. The 2BR FMR of $3120 represents only 31.6% of the median income, suggesting that while the FMR is affordable for the average resident, it is still a stretch for many low-income households. The high occupancy rate further exacerbates the issue, making it difficult for voucher holders to secure housing. #### Investor Angle From an investor perspective, the ZIP code 11413 presents both opportunities and challenges. The high occupancy rate suggests strong demand for rental properties, but the FMR is far below the market rent. To determine if this ZIP is cash-flow positive at FMR, we must consider the following: - **Cash Flow Positive**: If an investor can rent out a 2BR unit at the FMR of $3120, they would likely not achieve positive cash flow given the high median home price of $678,539. This implies that the cost of acquisition and maintenance would exceed the rental income at FMR levels. - **Investment Grade**: Given the tight rental market and high median home prices, the investment grade for this ZIP code is moderate to low. Investors should expect to face difficulties in finding tenants willing to pay the FMR, particularly when competing against market rates. #### Specific Actionable Insights 1. **Focus on Larger Units**: Since the FMR for larger units (3BR and 4BR) is higher ($3910 and $4240 respectively), investors might find better success by targeting larger units. These units are more likely to attract tenants who can afford the higher FMRs, reducing the risk of vacancy. 2. **Consider Non-Voucher Tenants**: Given the high median household income and the tight rental market, investors should also consider renting to non-voucher tenants. This could potentially yield higher rental income and reduce the dependency on government subsidies. 3. **Explore Renovation Opportunities**: Investors looking to capitalize on the high median home price might consider purchasing distressed properties and renovating them to command higher rents. However, this strategy requires a significant upfront investment and a thorough understanding of the local market dynamics. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** ZIP code 11413. The high disparity between the FMR and market rent makes it challenging to find suitable properties, and the tight market conditions suggest that landlords might be reluctant to accept vouchers. Instead, investors should look for areas with a closer alignment between FMR and market rents, or explore other strategies such as targeting larger units or non-voucher tenants.

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.