Section 8 Fair Market Rent (FMR) for ZIP 11772 - 2027

Investment Score for ZIP 11772

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,860
1 Bedroom	$2,160
2 Bedrooms	$2,540
3 Bedrooms	$3,270
4 Bedrooms	$3,470
5 Bedrooms	$4,025
6 Bedrooms	$4,508
7 Bedrooms	$4,869
8 Bedrooms	$5,112

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,160	$300,667	0.72%	D
2BR	$2,540	$525,345	0.48%	F
3BR	$3,270	$610,741	0.54%	F
4BR	$3,470	$671,267	0.52%	F
5BR	$4,025	$718,589	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 11772 (Patchogue, NY) #### Section 8 Voucher Dynamics In Patchogue, NY (ZIP code 11772), the Fair Market Rent (FMR) for 2026 is set at $2470 for a two-bedroom apartment. This figure represents 28.2% of the median household income in the area, which stands at $105,245. The FMRs for other bedroom sizes are as follows: $1790 for a zero-bedroom unit, $2140 for a one-bedroom unit, $3200 for a three-bedroom unit, and $3390 for a four-bedroom unit. These figures provide a benchmark for rental costs that are considered affordable by the federal government for low-income households participating in the Section 8 housing choice voucher program. However, comparing these FMRs to actual rents in the market reveals significant discrepancies. The Zillow median price for a two-bedroom home in this ZIP code is $507,174, which translates to a price-to-FMR ratio of 17.1x. This means that the actual rent prices in the market are much higher than the FMRs. For instance, if we assume a typical mortgage payment of $2,400 per month (based on the Zillow median price and average mortgage rates), this would far exceed the FMR of $2470 for a two-bedroom unit. Consequently, voucher holders face severe constraints in finding suitable housing within their budget. #### Affordability & Renter Profile The population of Patchogue is 45,023, with 31.1% of residents being renters. This indicates a relatively high demand for rental properties, suggesting that the market is somewhat tight. The occupancy rate of 92.6% further supports this conclusion, as it shows that most available units are already occupied. Given the high rent-to-income ratio and the limited availability of units, the market is likely to be competitive for renters. The median household income of $105,245 suggests that the area has a mix of middle-class and upper-middle-class residents. However, the FMRs indicate that a significant portion of the population relies on lower-cost housing options. With 28.2% of the median income allocated to a two-bedroom unit, it becomes clear that many residents, especially those who are part of the Section 8 program, struggle to find affordable housing. The disparity between the Zillow median price and the FMR highlights the challenge of affordability in this market. #### Investor Angle From an investor’s perspective, the ZIP code 11772 presents both opportunities and challenges. The high Zillow median price suggests that there is potential for capital appreciation, but the tight rental market and high price-to-FMR ratio make it difficult to achieve positive cash flow based solely on FMRs. To determine whether this ZIP code is cash-flow positive, we need to consider the typical rental prices and compare them to the FMRs. Given the FMRs, landlords who accept Section 8 vouchers will be limited in the amount they can charge. For example, a landlord renting a two-bedroom unit will receive $2470 per month, which is significantly less than the typical mortgage payment. This implies that investors looking to generate positive cash flow through rental income alone may find it challenging unless they can secure properties below the Zillow median price or have a lower cost basis. The investment grade for this ZIP code is moderate. While the area offers potential for long-term capital appreciation due to its high median home value, the immediate cash flow is likely to be negative or barely positive when relying solely on FMRs. Investors should carefully evaluate their financial models and consider the broader economic context of the area before making any investment decisions. #### Specific Actionable Insights 1. **Target Lower-Cost Properties**: Investors should focus on acquiring properties that are priced below the Zillow median price of $507,174. This could help in achieving better cash flow when renting out units at FMRs. For instance, a property purchased for around $400,000 would yield a monthly mortgage payment of approximately $1,800, which is closer to the FMR of $2470 for a two-bedroom unit. This would allow for a more manageable gap between the mortgage payment and the rental income. 2. **Consider Mixed-Income Developments**: Given the high median household income and the significant percentage of renters, developing mixed-income properties could be a viable strategy. By offering a range of units, some at FMRs and others at market rates, investors can balance their cash flow and cater to different segments of the rental market. For example, a development could include a mix of units where some are rented at $2470 (FMR for a two-bedroom unit) and others at $3,000 or more (market rates). 3. **Explore Government Programs**: Investors should explore additional government programs that might supplement the income from Section 8 vouchers. Some areas offer tax incentives, grants, or other subsidies for affordable housing projects. Additionally, combining Section 8 vouchers with other local assistance programs could improve the overall financial viability of the investment. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 11772 is to **Skip** this market for now. The high price-to-FMR ratio makes it difficult to achieve positive cash flow, and the tight rental market suggests that finding tenants willing to pay market rates may be challenging. While there is potential for long-term capital appreciation, the immediate financial constraints pose a significant risk for investors seeking to generate positive cash flow through rental income alone. If investors decide to proceed despite these challenges, they should carefully target lower-cost properties and consider developing mixed-income units to balance their financial risks. Additionally, leveraging government programs and subsidies could help mitigate some of the financial pressures associated with accepting Section 8 vouchers.

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.