Section 8 Fair Market Rent (FMR) for ZIP 11590 - 2027

Investment Score for ZIP 11590

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	$2,000
1 Bedroom	$2,330
2 Bedrooms	$2,740
3 Bedrooms	$3,520
4 Bedrooms	$3,740
5 Bedrooms	$4,338
6 Bedrooms	$4,859
7 Bedrooms	$5,248
8 Bedrooms	$5,510

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
1BR	$2,330	$429,066	0.54%	F
2BR	$2,740	$817,544	0.34%	F
3BR	$3,520	$848,479	0.41%	F
4BR	$3,740	$851,067	0.44%	F
5BR	$4,338	$895,315	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11590 (Westbury, NY) #### Section 8 Voucher Dynamics In ZIP code 11590, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2980 per month for 2026. This amount represents 23.4% of the median household income in the area, which is $152,960. However, it is important to note that the actual rental prices in Westbury significantly exceed the FMR. For instance, the Zillow median price for a two-bedroom home is $796,560, which translates to a monthly rent of approximately $3320 based on typical mortgage rates and property management costs. This means that the actual rental prices are about 22.3 times higher than the FMR, indicating a substantial gap between what the vouchers cover and the actual market rents. Given these figures, Section 8 voucher holders face significant constraints in finding suitable housing within their budget. The $2980 FMR for a two-bedroom unit is far below the average market rent, making it challenging for voucher recipients to find landlords willing to accept the lower payment. Additionally, the high occupancy rate of 97.8% suggests that there is little room for flexibility in terms of vacancy, further complicating the search for affordable housing. #### Affordability & Renter Profile The population of ZIP code 11590 is 47,599, with 23.3% of residents being renters. Given the median household income of $152,960, it is clear that the majority of residents are relatively affluent. The high median income indicates that the area is primarily composed of middle- to upper-class families who can afford the high cost of living. However, the 23.3% of renters suggest that there is still a segment of the population that relies on the rental market, albeit a smaller portion compared to other areas. The tight rental market, characterized by high occupancy rates and limited supply, makes it difficult for renters to find affordable options. With the actual rental prices being so much higher than the FMR, it is likely that many renters are paying a significant portion of their income towards housing. This tight market also implies that there is little oversupply, and any new rental units entering the market would likely be absorbed quickly. #### Investor Angle From an investor's perspective, the ZIP code 11590 presents a mixed picture when considering the FMR versus actual rental prices. At the FMR level, a two-bedroom apartment would rent for $2980 per month. However, given the actual median rental price of around $3320 per month, an investor would need to consider whether they can achieve cash flow positivity at the FMR rate. The price-to-FMR ratio of 22.3x indicates that the market is extremely expensive relative to the FMR. This high ratio suggests that properties in this ZIP code are generally overpriced for Section 8 tenants, who are only able to pay up to the FMR. Consequently, it would be challenging to find tenants willing to pay the FMR for a property that could otherwise command much higher rents. Moreover, the investment grade for this ZIP code would likely be low due to the difficulty in attracting tenants who can only pay the FMR. Investors might struggle to fill units at the FMR rate, leading to potential vacancy issues and reduced returns. The high median income and tight rental market also imply that competition for rental properties is fierce, and investors would need to offer competitive amenities and services to attract tenants. #### Specific Actionable Insights 1. **Focus on Multi-Family Properties**: Given the high price-to-FMR ratio, single-family homes are unlikely to be profitable for Section 8-focused investors. Instead, investors should focus on multi-family properties where economies of scale can help reduce the effective rent per unit. A three- or four-bedroom unit might be more attractive to families, and the higher FMRs ($3870 and $4090 respectively) could provide better cash flow opportunities. 2. **Consider Renovation Projects**: Investors looking to enter the Westbury market should consider purchasing older properties that require renovation. By investing in upgrades, they can potentially increase the rental value while still maintaining affordability for Section 8 tenants. This strategy could help bridge the gap between the FMR and the actual market rents. 3. **Explore Government Subsidies**: Given the high cost of living and the limited number of affordable units, investors might want to explore government subsidies and programs designed to support affordable housing. These programs can often provide additional funding or tax incentives that make it more feasible to operate properties at the FMR rate. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 11590 is to **skip** this market. The extremely high price-to-FMR ratio and the tight rental market indicate that it would be very challenging to find tenants willing to pay the FMR. Moreover, the high median income and limited supply of rental units suggest that the demand for affordable housing is low, making it difficult to achieve positive cash flow. Investors should look for markets with a more favorable balance between FMR and actual rental prices, or consider alternative strategies such as focusing on multi-family properties or exploring government subsidies to improve the viability of their investments.

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.