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 | $2,000 |
| 1 Bedroom | $2,330 |
| 2 Bedrooms | $2,740 |
| 3 Bedrooms | $3,520 |
| 4 Bedrooms | $3,740 |
| 5 Bedrooms | $4,338 |
| 6 Bedrooms | $4,859 |
| 7 Bedrooms | $5,248 |
| 8 Bedrooms | $5,510 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,740 | $593,669 | 0.46% | F |
| 3BR | $3,520 | $672,549 | 0.52% | F |
| 4BR | $3,740 | $791,374 | 0.47% | F |
| 5BR | $4,338 | $925,671 | 0.47% | F |
U.S. Census Bureau data (2024)
Skeptical investors often question whether Section 8 Fair Market Rents (FMR) can cover the mortgage on a home in ZIP 11755, which is Lake Grove, NY. They also wonder if there is sufficient renter demand at 21.5%, and whether housing vouchers will keep pace with the $2,157 market rents.
Will FMR $2710 (zip FY 2024) cover the mortgage on a $714,420 home? According to recent data, the median home value in 11755 is around $558,900, which is higher than the national average but slightly below nearby ZIP codes. To estimate the mortgage payment, consider an average interest rate and a typical down payment. With a median home value of $558,900 and assuming a 20% down payment, the loan amount would be approximately $447,120. At a 3.5% interest rate, the monthly mortgage payment would be roughly $1,995. Given the FMR of $2710, it is clear that the FMR covers the mortgage payment comfortably, leaving room for other expenses such as maintenance and property taxes.
Is there enough renter demand at 21.5%? The rental market demand in ZIP 11755 is a concern, especially when considering the relatively low percentage of renters. However, the median home value suggests that homeownership is prevalent, and with average monthly rents around $3,000, there is still a significant pool of potential renters who might be interested in Section 8 properties. While 21.5% may seem low, it translates into a substantial number of units needed in a community of this size. Additionally, the presence of the Housing Choice Voucher (HCV) program could attract more renters who qualify for assistance, thereby increasing demand.
Will vouchers keep pace with $2,157 market rents? The Housing Choice Voucher program's funding and administration are handled by Public Housing Authorities (PHAs), with oversight from HUD. In ZIP 11755, the FMR of $2710 is above the market rent of $2,157, indicating that vouchers should generally cover the cost of renting a modest unit. However, it's important to note that voucher usage and trends can vary widely depending on local PHA policies and funding levels. In New York City, for example, over 90,000 HCV households represent about 4% of the renter population. While specific data for Lake Grove is not readily available, the FMR suggests that vouchers should adequately support rental costs in this area.
The data does not provide a complete picture of all factors affecting the rental market in ZIP 11755, but it does offer a strong indication that Section 8 investments can be financially viable here. Landlords and small-portfolio investors should conduct further research and consult with local PHAs to better understand the specifics of voucher usage and trends in their area.
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.