Location: New York, NY | Metro: New York, NY HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,640 |
| 1 Bedroom | $2,780 |
| 2 Bedrooms | $3,030 |
| 3 Bedrooms | $3,830 |
| 4 Bedrooms | $4,200 |
| 5 Bedrooms | $4,872 |
| 6 Bedrooms | $5,457 |
| 7 Bedrooms | $5,894 |
| 8 Bedrooms | $6,189 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,830 | $766,886 | 0.5% | F |
U.S. Census Bureau data (2024)
In ZIP code 11416, understanding the economics of Section 8 can significantly influence your decision-making process as a landlord. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $2,570. This figure represents the maximum amount that the housing authority will pay towards the rent of a two-bedroom unit in ZIP 11416.
Local market rent, according to the Census ACS, stands at $2,009 for a similar two-bedroom unit. This indicates that the SAFMR is higher than the average market rent, which might seem advantageous at first glance. However, the actual reimbursement to landlords under Section 8 is not solely based on the SAFMR. It also includes the tenant's portion of the rent and any utility allowances.
The tenant's portion of the rent is typically 30% of their adjusted income. If the tenant's income is low enough to qualify for Section 8, they would pay a relatively small amount towards the rent. For instance, if a tenant's monthly income is $1,500, their portion of the rent would be $450 (30% of $1,500).
Utility allowances vary but generally cover the cost of electricity, gas, water, and sewer. These allowances are subtracted from the total SAFMR to determine the actual reimbursement rate. Assuming an average utility allowance of $200 per month, the reimbursement calculation would look like this:
$2,570 (SAFMR) - $450 (tenant's portion) - $200 (utility allowance) = $1,920.
This means that after accounting for the tenant's contribution and utility allowances, the typical reimbursement a landlord would receive for a two-bedroom apartment in ZIP 11416 is $1,920. Given the local market rent of $2,009, there is a slight gap of $89 between the reimbursement and the market rent. This gap must be covered by the landlord, indicating a minor financial shortfall when renting to Section 8 tenants.
However, it's important to note that the SAFMR is specifically set for this ZIP code, meaning it takes into account the unique economic conditions of the area. Despite the small gap, many landlords find Section 8 tenancy beneficial due to the stability it provides, including consistent rent payments and a government-backed program that ensures timely processing of reimbursements.
To summarize, in ZIP 11416, the typical reimbursement for a two-bedroom apartment under Section 8 is $1,920, resulting in a minor surplus of $89 over the local market rent of $2,009. While this doesn't offer significant profit margins beyond covering the market rent, it does provide a reliable and stable income stream for landlords.
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.