Section 8 Fair Market Rent (FMR) for ZIP 11421 - 2027

Investment Score for ZIP 11421

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	$2,650
1 Bedroom	$2,790
2 Bedrooms	$3,040
3 Bedrooms	$3,850
4 Bedrooms	$4,220
5 Bedrooms	$4,895
6 Bedrooms	$5,482
7 Bedrooms	$5,921
8 Bedrooms	$6,217

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	$2,790	$308,753	0.9%	C
2BR	$3,040	$359,462	0.85%	C
3BR	$3,850	$740,201	0.52%	F
4BR	$4,220	$790,179	0.53%	F
5BR	$4,895	$924,707	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11421 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11421 in Queens County, New York, is set by HUD for 2026. For a two-bedroom apartment, the FMR is $3080. However, the actual rent in the area is significantly higher, as evidenced by the Zillow median price for a two-bedroom property, which stands at $357,801. This translates to a price-to-FMR ratio of 9.7x, indicating that the actual rental costs are nearly ten times the FMR. This stark difference between FMR and actual rents creates significant constraints for voucher holders. The FMR is designed to ensure that housing is affordable for low-income families, but in ZIP 11421, the actual rents far exceed this benchmark. Consequently, tenants using Section 8 vouchers might struggle to find landlords willing to accept the voucher due to the substantial gap between the voucher amount and the market rent. #### Affordability & Renter Profile ZIP code 11421 has a population of 40,612, with 45.2% of residents being renters. The occupancy rate is quite high at 94.3%, suggesting that the rental market is tight and there is little vacancy. Given the median household income of $90,685, it is clear that the majority of residents can afford the high rental costs. However, for those relying on Section 8 vouchers, the situation is much more challenging. The FMR for a two-bedroom unit represents only 40.8% of the median income in the area, which means that even if a tenant receives a voucher, they would still need to contribute a significant portion of their income towards rent. This makes it difficult for low-income households to secure housing in this ZIP code, especially considering the high demand and limited supply. #### Investor Angle From an investor’s perspective, the ZIP code 11421 presents a mixed picture. While the rental market is robust and occupancy rates are high, the actual rents are far above the FMR levels. This means that properties rented at FMR would likely not generate positive cash flow for investors. To illustrate, let’s consider a two-bedroom apartment. At the FMR of $3080, the landlord would receive less than one-third of what the market rent could be. If we assume a conservative market rent of $3500 per month (based on the Zillow median price), the difference is substantial. Investors looking to maximize returns would likely find it more profitable to rent to market-rate tenants rather than those with Section 8 vouchers. The investment grade for this ZIP code would be considered low for Section 8-focused investors due to the high market rents and the difficulty in finding tenants who can cover the gap between the voucher amount and the actual rent. However, for those willing to rent to market-rate tenants, the ZIP code offers a strong potential for positive cash flow and appreciation. #### Specific Actionable Insights 1. **Focus on Market-Rate Tenants**: Given the high price-to-FMR ratio, investors should focus on renting to market-rate tenants rather than those with Section 8 vouchers. This will ensure better cash flow and potentially higher returns. 2. **Consider Short-Term Rentals**: With a high occupancy rate and limited vacancies, short-term rentals like Airbnb could be a viable option. This would allow investors to capitalize on the tight market conditions and potentially earn more than long-term rentals at FMR. 3. **Evaluate Property Appreciation Potential**: Despite the challenges with Section 8 vouchers, the median household income and population density suggest that property values could appreciate over time. Investors should consider the long-term value of their investments and the potential for capital gains. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** ZIP code 11421. The high price-to-FMR ratio and the tight rental market make it challenging to find properties that can be rented profitably at FMR levels. Instead, investors should look for areas where the FMR is closer to the actual market rent or where there is a higher percentage of low-income households that rely on Section 8 vouchers. For general investors, the ZIP code offers a **hold** recommendation. The strong rental market and high occupancy rates indicate that there is demand for housing, but investors should focus on renting to market-rate tenants or consider alternative uses such as short-term rentals to maximize profitability.

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.