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 | $1,970 |
| 1 Bedroom | $2,290 |
| 2 Bedrooms | $2,700 |
| 3 Bedrooms | $3,470 |
| 4 Bedrooms | $3,690 |
| 5 Bedrooms | $4,280 |
| 6 Bedrooms | $4,794 |
| 7 Bedrooms | $5,178 |
| 8 Bedrooms | $5,437 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,700 | $603,399 | 0.45% | F |
| 3BR | $3,470 | $756,974 | 0.46% | F |
| 4BR | $3,690 | $803,288 | 0.46% | F |
| 5BR | $4,280 | $878,961 | 0.49% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2390 for ZIP 11735 (Farmingdale, NY) in fiscal year 2024 will adequately cover the mortgage on a $716,925 home. According to recent mortgage rates, which typically range between 4% and 6%, a 30-year fixed-rate mortgage on a $716,925 home would result in monthly payments of approximately $3,400 to $4,200. Clearly, the FMR does not cover these costs, indicating that landlords must rely on other sources of income or have a significant down payment to offset the mortgage burden.
The investor could also argue that the rental market demand in Farmingdale, at 17.7%, seems low. However, this figure represents the proportion of housing units rented out, rather than the total number of potential renters. To better understand the demand, consider that Farmingdale has a population of around 30,000. Even with a relatively low rental rate, this still translates into a substantial number of units available for rent. Additionally, the nearby presence of Republic Airport and aviation-related businesses may attract renters who require proximity to these facilities.
Another concern is whether Housing Choice Vouchers will keep pace with market rents of $2,642. The data indicates that the voucher utilization rate in Farmingdale is lower than the national average, suggesting that there may be a gap between the number of vouchers available and the need for them. This means that landlords should not solely depend on vouchers to fill their properties. Instead, they should focus on marketing efforts to attract tenants willing to pay market rates.
In conclusion, while the FMR of $2390 is insufficient to cover mortgage payments on a $716,925 home, the rental market demand remains steady. Vouchers alone will not meet the full market rent, so landlords must diversify their tenant pool and manage their finances accordingly.
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.