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 | $1,800 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,480 |
| 3 Bedrooms | $3,210 |
| 4 Bedrooms | $3,400 |
| 5 Bedrooms | $3,944 |
| 6 Bedrooms | $4,417 |
| 7 Bedrooms | $4,770 |
| 8 Bedrooms | $5,009 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,480 | $776,724 | 0.32% | F |
| 3BR | $3,210 | $984,423 | 0.33% | F |
| 4BR | $3,400 | $1,372,543 | 0.25% | F |
| 5BR | $3,944 | $2,655,630 | 0.15% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 11771, Oyster Bay, NY, within the Nassau-Suffolk, NY HUD Metro FMR Area, does not align favorably for landlords. The Fair Market Rent (FMR) set at $2,360 for fiscal year 2024 contrasts sharply with the actual market rent reported by the Census ACS, which stands at $2,017. This discrepancy means that landlords participating in the Section 8 program may not receive rents reflective of the local market conditions, leading to potential financial strain.
Acquisition of properties in this area is relatively expensive. With a median home value of $1,285,955, purchasing homes here demands a significant capital investment. The lack of available data on days on market (DOM) and the low percentage of homes needing price cuts (0.1%) suggest that the market is stable but not particularly favorable for quick acquisitions or aggressive bargaining opportunities.
Tenant demand is present but limited. Oyster Bay has a population of 10,908, with 25.4% of residents being renters. While this indicates that there is a segment of the population actively seeking rental housing, the overall size of the rental pool is modest, which could impact the ability to quickly fill vacancies.
In conclusion, ZIP 11771 presents challenges for landlords and small-portfolio investors interested in Section 8 participation. The higher FMR compared to market rents can lead to financial inefficiencies. Property acquisition costs are high, with limited opportunities for negotiation. Although tenant demand exists, it is constrained by the relatively small number of renters in the area. These factors collectively suggest that while Section 8 investments in Oyster Bay might be viable, they require careful consideration and strategic planning to ensure profitability and sustainability.
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.