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 | $1,850 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,530 |
| 3 Bedrooms | $3,250 |
| 4 Bedrooms | $3,450 |
| 5 Bedrooms | $4,002 |
| 6 Bedrooms | $4,482 |
| 7 Bedrooms | $4,841 |
| 8 Bedrooms | $5,083 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,530 | $558,460 | 0.45% | F |
| 3BR | $3,250 | $664,220 | 0.49% | F |
| 4BR | $3,450 | $712,773 | 0.48% | F |
| 5BR | $4,002 | $746,438 | 0.54% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP 11703 (North Babylon, NY) for Section 8 properties, follow this decision tree based on the provided data.
1) Does FMR $2,490 (zip FY 2024) clear debt service on a $620,962 property?
No: The Fair Market Rent (FMR) of $2,490 does not cover the debt service on a property valued at $620,962. Assuming a typical mortgage rate of 5%, the annual debt service would be approximately $31,048. This equates to a monthly payment of about $2,587, which exceeds the FMR. Therefore, investing in this area for Section 8 purposes is not financially viable without additional income sources or subsidies.
Yes: If the landlord has a lower cost basis or access to cheaper financing, they may still find the investment feasible. However, given the standard rates and values, this scenario is unlikely.
2) Is market rent $1,971 (Census ACS) above, at, or below FMR?
Below FMR: The market rent of $1,971 is below the FMR of $2,490. This indicates that landlords could potentially receive higher rents from Section 8 tenants compared to market-rate tenants. However, this does not change the fact that the FMR does not cover the debt service costs.
At or Above FMR: If the market rent were at or above the FMR, it would suggest strong rental demand. But since the market rent is below the FMR, this scenario is not applicable.
3) Are 14.0% renters + N/A-day DOM enough demand?
It Depends: The percentage of renters in ZIP 11703 is 14.0%. While this figure alone does not indicate high demand, the average days on market (DOM) being listed as N/A suggests that either there is not enough data or the market moves quickly. A low DOM would imply high demand, but without specific numbers, it's unclear. Even if there is sufficient demand, the primary issue remains the FMR not covering the debt service costs.
In conclusion, the Fair Market Rent of $2,490 does not clear the debt service on a property valued at $620,962. Additionally, the market rent is below the FMR, suggesting potential benefits for Section 8 tenants over market-rate tenants. However, the lack of coverage on debt service makes this area unattractive for Section 8 investments unless other factors significantly offset these costs.
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.