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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,480 | $460,423 | 0.54% | F |
| 3BR | $3,210 | $560,391 | 0.57% | F |
| 4BR | $3,400 | $644,987 | 0.53% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 11778 (Rocky Point, NY) for Section 8 investments, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $2100 cover the debt service on a property valued at $537,902?
No. The FMR of $2100 does not sufficiently cover the debt service on a property costing $537,902. Debt service typically includes mortgage payments, insurance, taxes, and maintenance costs, which would likely exceed $2100 per month.
2) Is the market rent of $2,324 above, at, or below the FMR?
The market rent of $2,324 is above the FMR of $2100. This suggests that properties could potentially be rented at a higher rate than what is allowed under Section 8, but you must adhere to the FMR when participating in the program.
3) Are there enough renters and days on the market (DOM) to meet demand?
It depends. While the percentage of renters in the area is 11.2%, the data on days on the market (DOM) is not available. A low DOM indicates high demand, while a high DOM suggests lower demand. Without this information, it's challenging to assess the overall rental market health in Rocky Point, NY.
If the DOM is low, indicating strong demand, then the 11.2% of renters might be sufficient to sustain a Section 8 property. However, if the DOM is high, it could signal weak demand, making it difficult to find tenants even with the existing percentage of renters.
In conclusion, based on the given data, the FMR does not clear the debt service on a property valued at $537,902. The market rent being above the FMR suggests potential profitability outside of Section 8, but the lack of DOM data makes it impossible to fully evaluate the rental market's strength for Section 8 properties.
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.