Location: Nassau-Suffolk, NY | Metro: Nassau-Suffolk, 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 | $2,290 |
| 1 Bedroom | $2,670 |
| 2 Bedrooms | $3,140 |
| 3 Bedrooms | $4,040 |
| 4 Bedrooms | $4,290 |
| 5 Bedrooms | $4,976 |
| 6 Bedrooms | $5,573 |
| 7 Bedrooms | $6,019 |
| 8 Bedrooms | $6,320 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,040 | $983,298 | 0.41% | F |
| 4BR | $4,290 | $1,368,474 | 0.31% | F |
| 5BR | $4,976 | $2,816,743 | 0.18% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 11560 reveals two distinct scenarios based on the Fair Market Rent (FMR) and market rent figures provided. For the FMR scenario, the annualized rent for a 2-bedroom apartment is set at $2700. This figure, when compared to the median home value of $1,226,040, suggests a gross yield of approximately 0.22%. The calculation is straightforward: $2700 annual rent divided by $1,226,040 median home value equals 0.22%.
In contrast, the market rent for a 2-bedroom apartment is $3,179. Using this amount to calculate the gross yield, we find that it is approximately 0.26%. The computation follows the same logic: $3,179 annual rent divided by $1,226,040 median home value equals 0.26%.
Evaluating these scenarios, the market rent figure appears more realistic for several reasons. Firstly, the renter density in ZIP 11560 is relatively low at 11.8%, indicating a smaller pool of potential tenants who might be seeking Section 8 housing. Secondly, the FMR is typically lower than market rents due to government subsidies, which means the actual rental income landlords can expect might lean closer to the market rate.
While the difference between 0.22% and 0.26% gross yield is marginal, it's significant for investors considering the overall returns on their investment properties. The higher gross yield associated with market rent reflects a more accurate expectation for landlords and small-portfolio investors looking to understand the financial landscape of ZIP 11560.
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.