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 | $2,900 |
| 1 Bedroom | $3,050 |
| 2 Bedrooms | $3,320 |
| 3 Bedrooms | $4,200 |
| 4 Bedrooms | $4,600 |
| 5 Bedrooms | $5,336 |
| 6 Bedrooms | $5,976 |
| 7 Bedrooms | $6,454 |
| 8 Bedrooms | $6,777 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,320 | $628,574 | 0.53% | F |
| 3BR | $4,200 | $726,867 | 0.58% | F |
| 4BR | $4,600 | $768,217 | 0.6% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 11436 in New York, NY, reveals an interesting scenario when comparing the federal monthly rental limit (FMR) to the actual market rent. For a two-bedroom unit, the FMR for fiscal year 2024 is set at $2870 per month. Annualizing this figure yields a gross annual income of $34,440. In contrast, the Census ACS reports the market rent for a similar unit at $2,171 per month, which annualizes to $26,052.
To determine the gross yield, we must consider the median home value in the area, which stands at $678,656. Using the FMR-based annual income, the implied gross yield is approximately 5.08%. This calculation is derived by dividing the annualized income ($34,440) by the median home value ($678,656).
When using the market rent figure, the implied gross yield drops significantly to about 3.84%, calculated by dividing the annualized market rent ($26,052) by the median home value ($678,656).
The difference between these two gross yields highlights the financial impact of participating in the Section 8 program versus renting at market rates. However, the reality of the situation is influenced by the local rental market dynamics. With a renter density of 34.9%, it's clear that a significant portion of the population in 11436 relies on rental housing, making the demand for affordable units strong.
The N/A-day DOM (days on market) suggests that properties in this ZIP code are either rented quickly or there is insufficient data to provide a reliable average. Given the strong demand for rental properties and the high median home value, it's likely that landlords would prefer the higher gross yield offered by the Section 8 program. This preference is bolstered by the fact that the FMR is designed to be competitive with market rents, ensuring a steady stream of tenants.
In conclusion, while the market rent provides a more conservative gross yield, the Section 8 FMR offers a substantially higher return, at 5.08% compared to 3.84%. The higher FMR aligns better with the local rental market conditions and tenant needs, making it a more realistic scenario for landlords and small-portfolio investors in ZIP 11436.
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.