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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,210 | $826,340 | 0.39% | F |
| 4BR | $3,400 | $875,957 | 0.39% | F |
U.S. Census Bureau data (2024)
3.4% of the population in ZIP code 11565 are renters, indicating a relatively low demand for rental properties compared to owner-occupied homes. This is further underscored by the high median home value of $801,759, which suggests that the area is predominantly composed of expensive, owner-occupied dwellings. However, for those interested in the rental market, the Fair Market Rent (FMR) for Section 8 in ZIP code 11565 for fiscal year 2024 is set at $2440, providing a benchmark for affordable housing. In contrast, the actual market rent, based on Census ACS data, stands at $1,898, suggesting that there is room for properties to be priced below the FMR and still remain competitive in the local market.
$148,049 is the median income figure for ZIP code 11565, which is important when considering the affordability of housing for potential tenants. The discrepancy between the FMR and the market rent implies that landlords can potentially offer lower rents while still remaining above the average market rate, thereby attracting tenants who might qualify for the Section 8 program. Despite the lack of specific data regarding the average days on market (DOM) and the percentage of listings that have been price-cut, the overall economic context of the area, characterized by high property values and median incomes, indicates a stable market where rental properties can command reasonable rates without needing frequent adjustments.
Given the data, it's clear that ZIP code 11565 offers a niche opportunity for landlords and small-portfolio investors interested in the Section 8 program. The high median home value and median income figures suggest a strong economic foundation, while the gap between the FMR and market rent provides a strategic pricing window. Landlords should aim to offer rents close to but not exceeding the $2440 FMR to maximize their chances of attracting Section 8 tenants, while also ensuring that their properties are priced competitively against the $1,898 market rent. This approach will help maintain occupancy rates and ensure steady cash flow. In conclusion, ZIP code 11565 presents a viable option for Section 8 participation, with a balanced potential for both affordability and profitability.
Section 8 Verdict: Viable with strategic pricing.
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.