Section 8 Fair Market Rent (FMR) for ZIP 11420 - 2027

Investment Score for ZIP 11420

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	$2,800
1 Bedroom	$2,950
2 Bedrooms	$3,210
3 Bedrooms	$4,060
4 Bedrooms	$4,450
5 Bedrooms	$5,162
6 Bedrooms	$5,781
7 Bedrooms	$6,243
8 Bedrooms	$6,555

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
2BR	$3,210	$675,489	0.48%	F
3BR	$4,060	$770,260	0.53%	F
4BR	$4,450	$836,462	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11420 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11420 in 2026 is set at $3150 for a two-bedroom apartment. This amount represents 37.8% of the median household income in the area, which stands at $100,006. However, it is important to note that the actual rent for a two-bedroom unit can be significantly higher. The Zillow median price for a two-bedroom home in this ZIP code is $666,900, indicating that the rental market is highly competitive and expensive. The price-to-FMR ratio for a two-bedroom unit is 17.6x, meaning that the median home value is nearly 18 times the FMR. This suggests that the rental market is much pricier than what is covered by the Section 8 vouchers. For instance, a landlord renting a two-bedroom unit at the Zillow median price would need to charge around $5,557 per month ($666,900 / 120 months), far exceeding the $3150 covered by the voucher. Therefore, voucher holders face significant constraints in finding affordable housing within the ZIP code. #### Affordability & Renter Profile ZIP code 11420 has a population of 49,415, with 27.9% being renters. The occupancy rate is high at 95.2%, indicating that there is a strong demand for rental properties in the area. Given the median household income of $100,060, the majority of residents are likely to be middle-class individuals who can afford higher rents. However, the 27.9% of renters represent a substantial portion of the population who might struggle to find housing within their budget. The FMR for a two-bedroom unit is $3150, but the actual median rent is likely to be much higher due to the high price-to-FMR ratio. This tight market makes it difficult for low-income households to secure rental properties without assistance. Additionally, the high occupancy rate suggests that there is little room for new units to enter the market, further tightening the supply. #### Investor Angle From an investor perspective, the ZIP code 11420 presents a challenging environment for cash flow when relying solely on FMR. The FMR for a two-bedroom unit is $3150, while the actual median rent is likely to be closer to the Zillow median price, which translates to approximately $5,557 per month. This means that landlords who accept Section 8 vouchers will have to deal with a significant gap between the voucher amount and the market rent. Given the high price-to-FMR ratio and the limited number of voucher holders relative to the total population, the investment grade for this ZIP code is relatively low for Section 8-focused investors. The primary challenge is the low coverage of the voucher compared to the actual market rent, leading to potential financial strain for landlords. #### Specific Actionable Insights 1. **Target Larger Units**: Since the FMR for larger units (3BR and 4BR) is higher, targeting these units could provide better cash flow. For example, a three-bedroom unit has an FMR of $3940, which is still below the Zillow median price but offers a higher rental subsidy. 2. **Consider Mixed-Income Properties**: Develop or invest in mixed-income properties where some units are rented to voucher holders and others to market-rate tenants. This approach can balance the lower cash flow from Section 8 units with higher rents from other units. 3. **Engage with Local Housing Authorities**: Establish relationships with local housing authorities to understand the dynamics of voucher distribution and potentially gain insights into future funding and policy changes that could affect the market. #### Bottom Line For Section 8-focused investors, the ZIP code 11420 is a challenging market due to the high price-to-FMR ratio and the limited number of voucher holders. The recommendation would be to **Skip** this ZIP code unless you can target larger units or develop mixed-income properties. The tight market and high occupancy rates make it difficult to achieve positive cash flow purely through Section 8 vouchers.

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.