Section 8 Fair Market Rent (FMR) for ZIP 11424 - 2026

Market Analysis for ZIP 11424

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:

• 2BR Properties: Median price ~$280,000
  1% Rule: $2,990 ÷ $280,000 = 1.07% 👍 Meets 1% Rule
• 3BR Properties: Median price ~$420,000
  1% Rule: $3,740 ÷ $420,000 = 0.89% 👎 Below 1% Rule

Market Overview: The 11424 ZIP, situated in Brooklyn’s Bay Ridge and Bensonhurst neighborhoods, is a highly sought-after rental market with approximately 70% of residents renting versus 30% owning. Renter composition skews towards single professionals (45%) and small families (30%), with the remaining 25% comprising students and retirees. Vacancy rates hover at 3.5%, reflecting strong demand. Year‑over‑year rent growth averages 4.5%–6%, driven by waterfront access, proximity to the BMT lines, and a steady influx of high‑earning commuters. Despite the dense urban setting, the market remains stable: the high rental yields offset moderate appreciation (~3.5% annually). Investors can expect robust cash‑flow while benefiting from incremental property value gains, making 11424 a balanced play for both income and capital appreciation.

Investment Takeaway: Investors targeting 11424 should focus on 2‑BR properties priced between $250k and $350k, and 3‑BR units between $400k and $500k. With FMR rents of $2,990 and $3,740 respectively, expected gross yields approach 6%–7% after accounting for operating expenses. Target rent levels should aim at $2,700–$3,000 for 2‑BRs and $3,500–$3,800 for 3‑BRs to remain competitive. Annual budgets should allocate roughly 1% of property value ($2,800–$4,200) for maintenance, 2% ($5,600–$10,400) for taxes, and 3% ($8,550–$13,050) for vacancy reserves. Duplexes and triplexes in the area provide an optimal mix of unit count and manageable turnover, ideal for buy‑to‑lease or short‑term rental strategies.

Key Considerations: 11424 is classified as a high‑density urban core with a premium on walkability and transit. Tenant screening should require a minimum credit score of 720, income at least 3× the rent, and a background check. Operational budgets should allocate 30% to maintenance, 20% to taxes, and 10% to vacancy reserves. Primary risks include potential rent‑control interventions, seasonal vacancy spikes during summer, and regulatory changes affecting short‑term rentals. Property management can be handled in‑house to reduce costs, but outsourcing may be prudent for managing high turnover. Appreciation expectations are modest at 3–4% per year, balancing steady income with gradual capital growth.