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 | $1,980 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,710 |
| 3 Bedrooms | $3,490 |
| 4 Bedrooms | $3,700 |
| 5 Bedrooms | $4,292 |
| 6 Bedrooms | $4,807 |
| 7 Bedrooms | $5,192 |
| 8 Bedrooms | $5,452 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,710 | $491,122 | 0.55% | F |
| 3BR | $3,490 | $680,046 | 0.51% | F |
| 4BR | $3,700 | $757,178 | 0.49% | F |
| 5BR | $4,292 | $834,130 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 11751 in Islip, NY, is centered around the discrepancy between the Fair Market Rent (FMR) set at $2350 for fiscal year 2024 and the actual market rent reported at $2,257 according to the Census ACS. This gap amounts to $93, or approximately 4%, with the FMR being higher than the market rent.
In this scenario, where the FMR exceeds the market rent, voucher tenants become an attractive option for landlords and small-portfolio investors. The reason lies in the potential for higher yields. Given that the FMR is $2350, landlords can secure rental income close to this figure, which is above the current market rate of $2,257. This means that landlords can earn more per unit without having to compete with the local rental market's lower prices.
Islip, NY, has a relatively low percentage of renters at 16.6%, indicating that homeownership is prevalent in the area, with a median home value of $646,486. Despite this, the median household income stands at $116,559, suggesting that many residents might still find it challenging to afford homeownership. As such, the Section 8 program becomes a critical lifeline for those seeking affordable housing options.
The higher FMR relative to market rents makes it a compelling strategy for landlords who want to ensure steady and reliable cash flow. By participating in the Section 8 program, they can avoid the risks associated with market fluctuations and attract a stable tenant base. However, it's important to note that the administrative burden and compliance requirements of the Section 8 program must be weighed against the financial benefits.
To summarize, the gap between the FMR and market rent in ZIP 11751 presents a clear opportunity for landlords and small-portfolio investors to capitalize on higher yields through the Section 8 program. With the FMR exceeding the market rent by $93, or about 4%, this can be a strategic move to stabilize rental income while contributing to the community's need for affordable housing solutions.
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.