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 | $1,940 |
| 1 Bedroom | $2,250 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,410 |
| 4 Bedrooms | $3,620 |
| 5 Bedrooms | $4,199 |
| 6 Bedrooms | $4,703 |
| 7 Bedrooms | $5,079 |
| 8 Bedrooms | $5,333 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,410 | $815,915 | 0.42% | F |
| 4BR | $3,620 | $996,728 | 0.36% | F |
| 5BR | $4,199 | $1,206,501 | 0.35% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 11740 does not work in favor of landlords. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $2310, which is significantly higher than the actual market rent reported by the Census ACS at $684. This discrepancy suggests that properties in this ZIP code may struggle to attract tenants eligible for Section 8 subsidies, given the substantial gap between the FMR and the prevailing market rates.
Acquisition in ZIP code 11740 is not affordable for those seeking to enter the market as landlords. With a median home value of $821,302, the cost of purchasing residential properties is high. Unfortunately, data on the number of days on the market (DOM) and the percentage of homes requiring price cuts (price-cut share) is not available, which means there's limited insight into how quickly homes sell and if they require significant discounts. However, the high median home value alone indicates that acquiring properties here would be a significant investment, likely beyond the reach of many small-portfolio investors.
Tenant demand in ZIP code 11740 is moderate. The area has a population of 10,127, with 18.2% of residents being renters. This suggests that while there is a pool of potential tenants, it is relatively small compared to other areas with larger populations or higher renter shares. The demand for rental housing in this ZIP code may not be robust enough to support a large influx of new rental units, especially considering the higher FMR compared to market rents.
Based on the analysis, ZIP code 11740 is not a favorable market for Section 8 real-estate investments. The rent math is unfavorable due to the disparity between FMR and market rent, making it difficult to find eligible tenants. Additionally, the high median home value poses a barrier to entry for many investors. Lastly, the tenant demand, while present, is not strong enough to offset the challenges posed by the other factors. Therefore, this ZIP code should be approached with caution by those looking to invest in Section 8 properties.
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.