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 | $2,360 |
| 1 Bedroom | $2,480 |
| 2 Bedrooms | $2,700 |
| 3 Bedrooms | $3,420 |
| 4 Bedrooms | $3,740 |
| 5 Bedrooms | $4,338 |
| 6 Bedrooms | $4,859 |
| 7 Bedrooms | $5,248 |
| 8 Bedrooms | $5,510 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,700 | $633,059 | 0.43% | F |
| 3BR | $3,420 | $724,201 | 0.47% | F |
| 4BR | $3,740 | $784,106 | 0.48% | F |
| 5BR | $4,338 | $875,783 | 0.5% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 11433, located in New York, NY, specifically within Queens County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $2510. This figure is crucial because it is the maximum amount that the Section 8 program will pay for a unit in this specific area. However, the local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $2,785. This indicates that landlords might face a slight challenge in covering their costs if they rely solely on the SAFMR.
A Section 8 voucher does not cover the entire rent. Instead, it covers the difference between the tenant's portion and the total rent, up to the SAFMR limit. The tenant is responsible for paying approximately 30% to 40% of their income towards rent, which is then supplemented by the voucher. For instance, if a tenant's income is $20,000 per year, they would pay around $600 to $800 monthly toward rent, depending on the exact percentage applied. The voucher would cover the remaining amount, but only up to the SAFMR of $2510. Any rent above this level must be paid by the tenant directly.
In addition to the base rent, there are utility allowances that can vary based on the type of utilities required by the property. These allowances are designed to help cover the cost of utilities, ensuring that tenants have enough money left over for other necessities. Utility allowances are calculated separately and added to the base rent payment, but again, the total cannot exceed the SAFMR.
To illustrate, if a landlord charges $2,785 for a two-bedroom unit and the tenant's contribution is $600, the voucher would cover the remaining $1910. However, since the SAFMR is $2510, the landlord could potentially charge an additional $500 for utilities or other amenities, but the voucher would still only pay up to $2510. If the landlord's total charges exceed this amount, the tenant must make up the difference.
In ZIP 11433, given the SAFMR of $2510 and the local market rent of $2,785, landlords would typically see a reimbursement gap of $275 per month for a two-bedroom unit. This means that unless the tenant's portion plus the voucher equals the market rent, landlords must either adjust their rents downward to match the SAFMR or find ways to reduce their operating costs to remain profitable.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.