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 | $2,020 |
| 1 Bedroom | $2,350 |
| 2 Bedrooms | $2,770 |
| 3 Bedrooms | $3,560 |
| 4 Bedrooms | $3,780 |
| 5 Bedrooms | $4,385 |
| 6 Bedrooms | $4,911 |
| 7 Bedrooms | $5,304 |
| 8 Bedrooms | $5,569 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,770 | $753,500 | 0.37% | F |
| 3BR | $3,560 | $935,465 | 0.38% | F |
| 4BR | $3,780 | $1,150,222 | 0.33% | F |
| 5BR | $4,385 | $1,496,628 | 0.29% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 11768, Northport, NY, provides a detailed look into the financial viability of properties in this area when participating in the Section 8 program. With an annualized Fair Market Rent (FMR) for a 2-bedroom apartment set at $2670 for fiscal year 2024, and the market rent reported at $2,379 based on Census ACS data, we can derive the gross yields relative to the median home value of $945,733.
In the case of using the FMR of $2670, the implied gross yield is calculated as follows: ($2670 * 12 months) / $945,733 = $32,040 / $945,733 = 3.39%. This indicates that if a landlord were to participate in the Section 8 program, they would be earning approximately 3.39% annually on their investment, assuming the property's value is representative of the median home value in Northport.
Conversely, if the market rent of $2,379 is used, the implied gross yield drops to ($2,379 * 12 months) / $945,733 = $28,548 / $945,733 = 3.02%. This scenario reflects a lower annual return on investment for a landlord renting out a property under normal market conditions.
The difference between these two yields, 3.39% versus 3.02%, suggests that the Section 8 program offers a slightly higher gross yield compared to the general rental market. However, the reality of the situation must also consider the low renter density of 6.8% in Northport, indicating that only a small fraction of the population is actively seeking rental housing. Additionally, the N/A-day Days on Market (DOM) figure implies that there is limited recent data available regarding how quickly rental properties are being leased, which could affect the reliability of the market rent estimate.
Given the low renter density, it is more realistic to expect that landlords might lean towards the higher yield offered by the Section 8 program. The slightly elevated FMR of $2670, leading to a 3.39% gross yield, could provide a better financial cushion in a market where finding tenants willing to pay market rates may be challenging due to the limited number of renters. Nonetheless, the decision should be made with caution, considering the lack of recent leasing activity data.
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.