Section 8 Fair Market Rent (FMR) for ZIP 11520 - 2027

Investment Score for ZIP 11520

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	$1,800
1 Bedroom	$2,150
2 Bedrooms	$2,480
3 Bedrooms	$3,210
4 Bedrooms	$3,400
5 Bedrooms	$3,944
6 Bedrooms	$4,417
7 Bedrooms	$4,770
8 Bedrooms	$5,009

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
2BR	$2,480	$507,191	0.49%	F
3BR	$3,210	$685,908	0.47%	F
4BR	$3,400	$747,774	0.45%	F
5BR	$3,944	$800,684	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11520 (Freeport, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 11520 in 2026 is set at $2510 for a two-bedroom unit, which represents 24.7% of the median household income of $121,748. This indicates that the FMR is relatively affordable for the average resident in Freeport, NY. However, the actual rental prices in the area are significantly higher. According to Zillow, the median price for a two-bedroom unit is $491,162, which translates to a price-to-FMR ratio of 16.3x. This means that the actual rent for a two-bedroom unit is approximately $41,000 annually, while the FMR would only cover about $2510 per month. Given these figures, it is clear that there is a significant gap between the FMR and actual rents. For Section 8 voucher holders, this means they will face substantial challenges in finding housing that meets their financial capabilities. The constraints for voucher holders are severe, as they must find landlords willing to accept a rent that is far below the market rate. Additionally, the limited number of units available at or near the FMR could make it difficult for voucher holders to secure housing, leading to potential overcrowding or displacement issues. #### Affordability & Renter Profile In Freeport, NY, 28.7% of the population are renters, indicating a moderate demand for rental properties. With a high occupancy rate of 94.3%, the market appears to be fairly tight, suggesting that there is little excess supply of rental units. Given the median household income of $121,748, the typical renter profile likely includes middle-income families who can afford market rates but may still benefit from assistance programs like Section 8. However, the high price-to-FMR ratio of 16.3x implies that the market is not particularly affordable for low-income households. The median price for a two-bedroom unit being $491,162 suggests that many renters are paying a premium for housing. This tight market condition makes it challenging for lower-income individuals to find affordable housing, especially when the FMR is so much lower than the actual rent prices. #### Investor Angle From an investor perspective, the ZIP code 11520 presents a mixed picture. While the FMR for a two-bedroom unit is $2510, the actual median rent is $491,162, which is approximately $41,000 annually. This means that if an investor were to purchase a property at the median price and rent it out at the FMR, they would likely face negative cash flow due to the high cost of acquisition and maintenance. To determine the investment grade, we need to consider factors such as vacancy rates, rental yields, and the overall demand for rental properties. Given the high occupancy rate of 94.3%, the risk of vacancy is relatively low. However, the price-to-FMR ratio of 16.3x suggests that rental yields would be very low if the investor were to rent at the FMR. Therefore, the investment grade for properties in this ZIP code, specifically for those focused on Section 8 vouchers, is poor. Investors would struggle to achieve positive cash flow without significant subsidies or government support. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Since the FMR for a two-bedroom unit is only $2510, investors should consider focusing on smaller units such as studios or one-bedroom apartments. These units have FMRs of $1820 and $2170 respectively, which are more in line with the median household income and could potentially offer better cash flow opportunities. For instance, a one-bedroom unit rented at $2170 per month would generate $26,040 annually, which is closer to the actual market value. 2. **Government Subsidies**: Given the high price-to-FMR ratio, investors should look into government subsidies and other assistance programs that can help bridge the gap between the FMR and actual market rent. This might include additional funding from local or state governments, or exploring alternative financing options that provide incentives for affordable housing development. 3. **Rent Stabilization**: Consider areas where rent stabilization laws are in place. These laws can limit how much landlords can increase rent, making it easier for voucher holders to find and maintain housing. However, the current data does not indicate whether such laws are active in Freeport, NY, so further research would be needed. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 11520 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow without significant subsidies. Additionally, the limited availability of units at or near the FMR suggests that there is a mismatch between the needs of voucher holders and the supply of affordable housing in the area. Investors looking to enter this market should carefully evaluate the potential for government support and consider alternative markets with more favorable conditions for Section 8 properties.

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.