Section 8 Fair Market Rent (FMR) for ZIP 11425 - 2026

Market Analysis for ZIP 11425

Cities Covered: This ZIP code covers Brooklyn.

FMR Rates (FY 2026):
Studio: $2,220 | 1BR: $2,320 | 2BR: $2,570 | 3BR: $3,200 | 4BR: $3,460

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$680,000
  1% Rule: $2,570 ÷ $680,000 = 0.38% 👎 Below 1% Rule
• 3BR Properties: Median price ~$820,000
  1% Rule: $3,200 ÷ $820,000 = 0.39% 👎 Below 1% Rule

Market Overview: Brooklyn’s 11425 ZIP code remains a high‑demand rental hub with a renter population of roughly 60% of the housing stock, split 35% families, 25% singles, 15% students, 5% seniors, and 20% others. Owner‑occupancy sits at about 40%. Current vacancy rates hover near 4.2%, reflecting healthy demand. Year‑over‑year rent growth is solid, ranging from 5.0% to 7.0%. Drivers include proximity to multiple subway lines, new commercial developments, and continued influx of tech‑sector professionals. The market is moderately stable; while rents are resilient, appreciation remains strong at 6‑8% annually. Cash flow is positive but tight—gross yields around 4–5% before expenses—yet long‑term appreciation offers compelling upside for investors willing to navigate a competitive, high‑density environment.

Investment Takeaway: Property prices for 2‑unit condos in 11425 typically range from $600,000 to $800,000, while 3‑unit buildings sit between $800,000 and $1,000,000. Target gross yields before debt service and operating costs fall between 4.0% and 5.0%. Ideal strategies include multi‑unit acquisition with a rehab‑flip or long‑term rental approach. Rent targets should aim at $2,500–$3,000 for 2‑BR units and $3,200–$3,500 for 3‑BR units to stay competitive yet profitable. Annual operating budgets—including maintenance, property taxes, and a 5% vacancy cushion—should consume roughly 12% of the purchase price. Condo associations with professional management are recommended for streamlined operations and consistent cash flow.

Key Considerations: 11425 is classified as a high‑growth, moderate‑risk market. Tenant screening should require a credit score above 700 and a minimum of 2.5× monthly rent in income. Allocate 8% of the purchase price for maintenance, 10% for property tax, and 5% for vacancy reserves. Primary risks include potential regulatory changes to rental caps and HOA fee escalations. Professional property management is advised to handle high tenant turnover and compliance. Appreciation expectations remain in the 6–8% range, offering a balanced mix of cash flow and capital gains.