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 | $1,870 |
| 1 Bedroom | $2,180 |
| 2 Bedrooms | $2,560 |
| 3 Bedrooms | $3,290 |
| 4 Bedrooms | $3,490 |
| 5 Bedrooms | $4,048 |
| 6 Bedrooms | $4,534 |
| 7 Bedrooms | $4,897 |
| 8 Bedrooms | $5,142 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,290 | $760,798 | 0.43% | F |
| 4BR | $3,490 | $941,336 | 0.37% | F |
| 5BR | $4,048 | $1,234,171 | 0.33% | F |
U.S. Census Bureau data (2024)
ZIP 11581, located within the Nassau-Suffolk, NY HUD Metro FMR Area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 11581 in fiscal year 2024 is set at $2410, significantly lower than the average market rent of $3600. This $1190 spread ensures that properties participating in the Section 8 program can still generate positive cash flow while offering affordable housing options to tenants.
The median home value in ZIP 11581 stands at $812,585, which is high but does not impact the rental market dynamics directly. The key factor here is the FMR, which is designed to cover the cost of renting modest housing in the lowest-cost quarter of the local market. Given the FMR is below the market rent, landlords can maintain profitability by leveraging the Section 8 program.
Additionally, the ZIP code has a low 0.2% price-cut share, indicating that very few listings are being discounted, and the N/A-day Days on Market (DOM) suggests that homes are selling quickly once listed. However, these factors are more indicative of the sales market rather than the rental market. For diversification purposes, ZIP 11581 has a 16.6% renter share, which is moderate, and the median income of $142,233 is relatively high, suggesting a stable tenant base with the financial capacity to pay rent.
In conclusion, ZIP 11581 is best suited as a cash-flow anchor due to the substantial difference between the FMR and the market rent, ensuring steady and reliable income for landlords and small-portfolio investors involved in the Section 8 program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.