Location: Nassau-Suffolk, NY | Metro: Nassau-Suffolk, NY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,800 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,480 |
| 3 Bedrooms | $3,210 |
| 4 Bedrooms | $3,400 |
| 5 Bedrooms | $3,944 |
| 6 Bedrooms | $4,417 |
| 7 Bedrooms | $4,770 |
| 8 Bedrooms | $5,009 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 11726, Copiague, NY, reveals interesting insights into the investment potential for landlords and small-portfolio investors. For a two-bedroom property, the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $2210 per month. This translates to an annualized rental income of $26,520. Given the median home value in the area is $568,457, the implied gross yield from Section 8 participation would be approximately 4.67%. This is calculated by dividing the annual rental income by the median home value.
In contrast, the market rent for a similar two-bedroom property, based on Census ACS data, is $2,155 per month, which annualizes to $25,860. Using the same median home value, this scenario yields a gross return of about 4.55%. The difference between these two yields is minimal, reflecting that the Section 8 rates closely align with market rents in this region.
Evaluating the realism of these yields requires consideration of the local rental market conditions. With a renter density of 25.5%, there is a significant portion of the population seeking rental housing, including those who might qualify for Section 8. However, the N/A-day Days on Market (DOM) suggests incomplete data regarding how quickly properties are rented out, which could indicate either a robust or a sluggish rental market depending on other factors.
Given the tight alignment between the Section 8 FMR and the market rent, it is reasonable to conclude that the 4.67% gross yield from Section 8 participation is nearly equivalent to the 4.55% from market rent. This makes Section 8 a viable option for landlords and investors, especially considering the steady stream of government-subsidized payments. While market conditions can vary, the consistent rental rates imply that Section 8 participation offers a reliable investment strategy with yields comparable to market-level returns.
Data Sources: FMR data from HUD (2027). 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.