Section 8 Fair Market Rent (FMR) for ZIP 11580 - 2027

Investment Score for ZIP 11580

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	$2,280
1 Bedroom	$2,390
2 Bedrooms	$2,620
3 Bedrooms	$3,280
4 Bedrooms	$3,570
5 Bedrooms	$4,141
6 Bedrooms	$4,638
7 Bedrooms	$5,009
8 Bedrooms	$5,259

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	$2,620	$568,525	0.46%	F
3BR	$3,280	$758,412	0.43%	F
4BR	$3,570	$799,589	0.45%	F
5BR	$4,141	$898,587	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11580 (Valley Stream, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 11580, as provided by the U.S. Department of Housing and Urban Development (HUD), are set at $2170 for a 0-bedroom unit, $2260 for a 1-bedroom unit, $2610 for a 2-bedroom unit, $3390 for a 3-bedroom unit, and $3580 for a 4-bedroom unit. These FMRs represent the maximum rent that a Section 8 voucher holder can pay for a given unit size. However, it is important to note that these figures are significantly lower than the actual market rents in Valley Stream. For instance, the Zillow median price for a 2-bedroom unit is $544,759, which translates to a monthly mortgage payment of approximately $2,540 based on a 30-year fixed-rate mortgage at a 4% interest rate. This means that even a 2-bedroom unit, which is priced at $2,540 per month, exceeds the FMR of $2610. The disparity between the FMR and actual rents creates significant constraints for voucher holders. They would struggle to find units that fit within their budget, particularly for larger units like 3- and 4-bedroom apartments where the gap is even wider. The 2-bedroom unit FMR represents only 22.8% of the median household income in the area ($137,402), indicating that while it is affordable relative to income, it still falls short of the actual market rents. #### Affordability & Renter Profile Valley Stream has a relatively low rental population, with only 17.1% of households being renters. This suggests that the majority of residents are homeowners, which could indicate a tight rental market. The occupancy rate of 95.5% further supports this notion, as it implies that there is little vacancy and high demand for available units. Given the high median household income and the fact that many residents own homes, those who do rent are likely to be higher-income individuals or families who can afford the premium rents. The market dynamics suggest that there is a strong demand for rental properties, but the supply is limited, leading to higher rents. The FMRs, however, do not reflect this reality, making it challenging for lower-income tenants to find suitable housing. This tight market condition also means that landlords have less incentive to accept Section 8 vouchers, as they can command higher rents from non-voucher tenants. #### Investor Angle From an investor perspective, the ZIP code 11580 presents a mixed picture. While the occupancy rates are high, indicating a stable demand for rental properties, the FMRs are substantially below the actual market rents. For example, the 2-bedroom FMR of $2610 is only about half of the Zillow median price of $544,759, which translates to a monthly mortgage payment of around $2,540. This indicates that an investor would need to secure a tenant willing to pay a premium above the FMR to achieve positive cash flow. Given the high median household income and the limited number of renters, it is likely that most rental units are occupied by higher-income individuals who can afford the premium rents. Therefore, relying solely on FMRs would make it difficult for investors to generate positive cash flow. Additionally, the price-to-FMR ratio of 17.4x for a 2-bedroom unit underscores the extreme disparity between market values and HUD's FMR guidelines. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as 0- and 1-bedroom apartments, where the FMRs are closer to the actual market rents. For instance, the FMR for a 1-bedroom unit is $2260, which is more feasible compared to the higher FMRs for larger units. This strategy could help mitigate the risk of negative cash flow. 2. **Target Higher-Income Tenants**: Given the high median household income and the limited rental population, targeting higher-income tenants who can afford premium rents is a viable strategy. This approach would require marketing efforts to attract non-voucher tenants, potentially through amenities and modernization of units. 3. **Consider Long-Term Appreciation**: Despite the challenges posed by the FMRs, investors might still find value in the long-term appreciation potential of properties in Valley Stream. With a median home value of $544,759, there is a possibility that property values will continue to rise, providing capital gains over time. #### Bottom Line For investors focused on Section 8 vouchers, the ZIP code 11580 (Valley Stream, NY) is generally not recommended due to the significant gap between FMRs and actual market rents. The tight rental market and high occupancy rates suggest that landlords can easily find non-voucher tenants willing to pay higher rents. As a result, the recommendation for Section 8-focused investors is to **skip** this ZIP code. Instead, investors might want to explore areas with a higher percentage of renters and lower price-to-FMR ratios to ensure positive cash flow and a better alignment with HUD’s FMR guidelines.

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.