Section 8 Fair Market Rent (FMR) for ZIP 11435 - 2027

Investment Score for ZIP 11435

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	$2,680
1 Bedroom	$2,820
2 Bedrooms	$3,070
3 Bedrooms	$3,880
4 Bedrooms	$4,260
5 Bedrooms	$4,942
6 Bedrooms	$5,535
7 Bedrooms	$5,978
8 Bedrooms	$6,277

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	$2,820	$248,281	1.14%	B
2BR	$3,070	$363,067	0.85%	C
3BR	$3,880	$767,571	0.51%	F
4BR	$4,260	$866,822	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11435 (New York, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11435 in Queens County, New York, is set to be $2940 for a two-bedroom unit in 2026. However, the actual rent for a two-bedroom unit can be significantly higher. The Zillow median price for a two-bedroom unit in this area is $358,837, which translates to a monthly rent of approximately $2990 if we assume a typical cap rate of 5%. This means that the actual rent is slightly above the FMR, but the key issue lies in the fact that the Zillow median price reflects the median home value, not necessarily the rental market. To get a clearer picture, let’s consider the Price-to-FMR ratio, which is 10.2x. This suggests that the median home value is about 10.2 times the FMR for a two-bedroom unit. If we take the FMR of $2940 and multiply it by 10.2, we get an estimated median home value of $30,008 per month, which is far higher than the Zillow median price suggests. Therefore, the actual rents in the area are likely to be much higher than the FMR, creating significant constraints for voucher holders. For instance, a three-bedroom unit has an FMR of $3680, but the actual rent could be substantially higher, making it difficult for those relying on vouchers to find suitable housing. #### Affordability & Renter Profile ZIP code 11435 has a population of 56,826, with 64.0% of residents being renters. This indicates a strong demand for rental properties in the area. The occupancy rate stands at 93.8%, suggesting that the market is relatively tight, with most available units being occupied. Given that the median household income is $79,710, the affordability of housing becomes a critical issue. The FMR for a two-bedroom unit is $2940, which represents 44.3% of the median income. This implies that a significant portion of the median income is dedicated to housing costs, leaving little room for other expenses. The high rent-to-income ratio makes it challenging for low-income households to afford housing without assistance, such as Section 8 vouchers. #### Investor Angle From an investor perspective, the cash flow potential at FMR levels needs careful consideration. With the FMR for a two-bedroom unit at $2940, investors would need to evaluate whether this amount is sufficient to cover their mortgage payments, property taxes, insurance, maintenance, and other operating costs. Given the high median home values and the tight rental market, it is likely that actual rents will exceed the FMR. However, the gap between the FMR and actual rents can create challenges for investors who rely on Section 8 vouchers. They might struggle to find tenants willing to pay the higher actual rents, leading to potential vacancies or lower occupancy rates. The investment grade for this ZIP code can be considered moderate due to the high demand for rental properties and the tight market conditions. However, the reliance on Section 8 vouchers introduces additional risk, as the rental income is capped at the FMR level. Investors should also consider the potential for gentrification and rising property values, which could affect long-term returns. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high rent-to-income ratio and the tight market, investors should focus on smaller units, such as one-bedroom or studio apartments, where the FMR is lower ($2680 for a one-bedroom). These units are more likely to be affordable for voucher holders and could offer better cash flow potential. 2. **Consider Property Value Appreciation**: While the current rental market is tight, the high median home value suggests that there is potential for property appreciation over time. Investors should consider the long-term value of their investments and not solely rely on rental income. Properties that are currently priced at or below the Zillow median could provide opportunities for capital gains. 3. **Evaluate Operating Costs Carefully**: Due to the high median home values, operating costs such as property taxes and insurance could be substantial. Investors should conduct a thorough cost analysis to ensure that the FMR levels are sufficient to cover these expenses and generate a positive cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 11435 is to **Hold**. The tight rental market and high demand for rental properties make it a stable investment. However, the reliance on Section 8 vouchers introduces risks due to the capped rental income. Investors should carefully evaluate their property selection and operating costs to ensure they can achieve positive cash flow. Additionally, focusing on smaller units and considering the potential for property appreciation could help mitigate some of these risks.

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.