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 | $1,990 |
| 1 Bedroom | $2,320 |
| 2 Bedrooms | $2,730 |
| 3 Bedrooms | $3,510 |
| 4 Bedrooms | $3,730 |
| 5 Bedrooms | $4,327 |
| 6 Bedrooms | $4,846 |
| 7 Bedrooms | $5,234 |
| 8 Bedrooms | $5,496 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,730 | $464,436 | 0.59% | F |
| 3BR | $3,510 | $650,099 | 0.54% | F |
| 4BR | $3,730 | $775,376 | 0.48% | F |
U.S. Census Bureau data (2024)
ZIP code 11742, located in Holtsville, NY, falls within the Nassau-Suffolk, NY HUD Metro FMR Area. The Fair Market Rent (FMR) for this ZIP code in fiscal year 2024 is set at $2,510. This figure is slightly above the market rent of $2,400, indicating that the government's estimate for affordable housing is marginally higher than what the private market currently offers.
The median home value in ZIP 11742 is $630,839. This is a key metric when assessing the overall cost of living and investment potential in the area. However, it's important to note that only 16.4% of the residents are renters, which is lower than the average renter share for typical ZIP codes within the Nassau-Suffolk, NY HUD Metro FMR Area. This suggests that Holtsville leans more towards being a homeowner-centric community.
To determine if ZIP 11742 represents a value pocket, a mid-tier neighborhood, or a premium sub-market within the larger Nassau-Suffolk metro, we must consider the interplay between its FMR, market rent, home values, and renter share. The FMR of $2,510 is comparable to the market rent, suggesting that rental properties here are priced reasonably close to what the government deems fair for low-income households. Given the median home value, ZIP 11742 isn't considered a premium sub-market, where home values would be significantly higher. Instead, it aligns more closely with mid-tier neighborhoods.
However, the relatively low renter share diverges from what might be expected in a typical Section 8 sweet spot. Usually, areas with a high concentration of renters and below-average home values are more attractive for Section 8 investments. In ZIP 11742, while the home values are not particularly low, the rental market remains competitive and within reach for Section 8 participants. This makes it a solid option for landlords and investors looking to serve the needs of low-income families without venturing into the most distressed areas.
In summary, ZIP 11742 presents itself as a mid-tier neighborhood within the Nassau-Suffolk, NY HUD Metro FMR Area. It offers rental opportunities that are fairly priced and suitable for Section 8 tenants, while also maintaining home values that reflect a balanced real estate market. Investors should take note of the specific figures: an FMR of $2,510, market rent of $2,400, and a median home value of $630,839, alongside a modest renter share of 16.4%. These factors suggest a stable and potentially lucrative market for those interested in affordable housing investments.
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.