Section 8 Fair Market Rent (FMR) for ZIP 11704 - 2027

Investment Score for ZIP 11704

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	$1,880
1 Bedroom	$2,190
2 Bedrooms	$2,580
3 Bedrooms	$3,320
4 Bedrooms	$3,520
5 Bedrooms	$4,083
6 Bedrooms	$4,573
7 Bedrooms	$4,939
8 Bedrooms	$5,186

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,580	$562,357	0.46%	F
3BR	$3,320	$665,050	0.5%	F
4BR	$3,520	$721,788	0.49%	F
5BR	$4,083	$758,310	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11704 (West Babylon, NY) #### Section 8 Voucher Dynamics In ZIP code 11704, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2,680 per month for 2026. This amount represents 24.9% of the median household income in West Babylon, which is $129,195. The FMRs for other bedroom types are as follows: $1,940 for zero bedrooms, $2,320 for one bedroom, $3,480 for three bedrooms, and $3,680 for four bedrooms. However, the actual rental market in West Babylon is significantly higher. According to Zillow, the median price for a two-bedroom home is $544,933, translating to a monthly rent of approximately $4,541 if we consider a typical mortgage payment based on a 4.5% interest rate over 30 years. This means that the actual rent is about 1.69 times the FMR, indicating a substantial gap between what vouchers can cover and the true cost of renting. The constraints for voucher holders are clear: they will find it challenging to secure housing within their budget. For example, a voucher holder seeking a two-bedroom apartment would have to find a property willing to accept $2,680 per month, which is only about 59% of the average market rent. This makes it difficult for them to compete with non-voucher renters who can afford the higher rates. #### Affordability & Renter Profile Given the median household income of $129,195, the affordability of housing is relatively high for the general population. However, for those relying on Section 8 vouchers, the situation is quite different. Only 25.6% of the population are renters, suggesting a relatively small rental market compared to homeownership. The occupancy rate of 96.6% indicates a tight market where most available units are already occupied, leaving limited options for new tenants. The renter profile in West Babylon is likely to include families and individuals who are either low-income or middle-income but struggling to meet the high costs of housing. Given the high median household income, many residents might be able to afford homes outright, leading to a smaller pool of potential renters. This tight market could exacerbate the challenges faced by voucher holders, as landlords might prefer higher-paying tenants. #### Investor Angle From an investor perspective, the cash flow potential at FMR levels is minimal. With the actual median rent for a two-bedroom unit being $4,541 and the FMR being $2,680, landlords accepting Section 8 vouchers would be operating at a significant discount. This disparity reduces the profitability of properties rented through Section 8 programs. The investment grade in this ZIP code is likely to be lower for Section 8-focused investors due to the high price-to-FMR ratio. At 16.9x, this suggests that the market is highly inflated relative to the government-set FMRs. Investors looking to maximize returns might find better opportunities in areas with a lower price-to-FMR ratio, where the gap between FMR and actual rents is less pronounced. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as zero-bedroom and one-bedroom apartments. These units have FMRs of $1,940 and $2,320 respectively, which are closer to the actual market rents. This strategy could help mitigate some of the financial pressure associated with accepting Section 8 vouchers. 2. **Target Affordable Housing Projects**: Investors might want to explore affordable housing projects that receive additional subsidies or incentives from local or state governments. These projects can provide a more stable and predictable cash flow, even when operating at FMR levels. 3. **Consider Long-Term Rental Agreements**: Landlords who are willing to accept Section 8 vouchers might benefit from offering longer-term rental agreements. This can help ensure a steady stream of income and reduce turnover costs, which can be particularly beneficial given the tight market conditions and the difficulty in finding suitable properties for voucher holders. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 11704 is to **Skip**. The high price-to-FMR ratio and tight market conditions make it challenging to achieve positive cash flow. Additionally, the small percentage of renters and high median household income suggest that the demand for Section 8 rentals is limited. Investors would likely find more favorable conditions in areas with a lower price-to-FMR ratio and a larger rental market.

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.