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 | $2,190 |
| 1 Bedroom | $2,550 |
| 2 Bedrooms | $3,000 |
| 3 Bedrooms | $3,860 |
| 4 Bedrooms | $4,100 |
| 5 Bedrooms | $4,756 |
| 6 Bedrooms | $5,327 |
| 7 Bedrooms | $5,753 |
| 8 Bedrooms | $6,041 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,550 | $503,206 | 0.51% | F |
| 2BR | $3,000 | $730,683 | 0.41% | F |
| 3BR | $3,860 | $881,984 | 0.44% | F |
| 4BR | $4,100 | $1,076,389 | 0.38% | F |
| 5BR | $4,756 | $1,277,289 | 0.37% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 11561, specifically Long Beach, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for 2024 is set at $2840, while the market rent, as indicated by the Zillow Rent Index (ZORI), stands at $3944. This represents a difference of $1104 per month, or approximately 38.8% below the market rate.
The discrepancy between the FMR and the market rent means that landlords and small-portfolio investors who accept Section 8 vouchers will be renting their properties below the open-market rates. In Long Beach, where the median home value is $820,863 and the median household income is $141,629, the decision to rent at these lower rates must be carefully considered.
In this context, accepting voucher tenants can be seen as a yield play rather than a profit maximization strategy. With only 33.0% of residents being renters, the rental market is relatively small compared to the overall housing market. However, the steady stream of government-subsidized rents can provide a reliable income source, particularly for landlords who own multiple units or small portfolios of properties.
Despite the benefits, there are costs associated with housing voucher tenants. Landlords must comply with inspection requirements and ensure their properties meet certain standards. Additionally, the lower rental rates mean that profits will be smaller, which could impact the overall return on investment. For investors looking to maximize returns, this scenario might not be ideal given the high median home values and incomes in the area.
To summarize, the gap between the FMR and market rent in ZIP 11561 presents both opportunities and challenges for landlords and small-portfolio investors. While it offers a stable income, it also comes with the trade-off of reduced profitability due to the subsidy structure of the Section 8 program.
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.