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 | $2,940 |
| 1 Bedroom | $3,420 |
| 2 Bedrooms | $4,030 |
| 3 Bedrooms | $5,180 |
| 4 Bedrooms | $5,500 |
| 5 Bedrooms | $6,380 |
| 6 Bedrooms | $7,146 |
| 7 Bedrooms | $7,718 |
| 8 Bedrooms | $8,104 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $5,180 | $1,066,377 | 0.49% | F |
| 4BR | $5,500 | $1,296,515 | 0.42% | F |
| 5BR | $6,380 | $2,064,687 | 0.31% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 11791 reveals a stark contrast between the federally mandated Fair Market Rent (FMR) and the actual market rental rates. For a two-bedroom property, the annualized FMR set by HUD for fiscal year 2024 is $3760. In comparison, the Census ACS reports the average market rent for a similar unit at $3,019 annually.
To calculate the gross yield, we first need to understand that the gross yield is derived by dividing the annual rental income by the property's value. With a median home value of $1,165,851, the implied gross yield using the FMR is approximately 0.32%. This figure is calculated by taking the annual FMR ($3760) and dividing it by the median home value ($1,165,851).
Conversely, when using the market rent of $3,019, the implied gross yield drops even further to about 0.26%. This calculation is done similarly by dividing the annual market rent by the median home value.
The significant difference between these two yields highlights the financial realities for landlords participating in the Section 8 program versus those who can secure market rents. Given the low renter density of 6.5%, it becomes evident that securing a tenant through the Section 8 program is less likely, making the higher FMR gross yield less realistic for most properties in this area.
The data does not provide an average number of days on the market (DOM), which would be useful to determine how quickly a property might be rented. However, considering the high median home value and the relatively low market rent, it is reasonable to assume that landlords will prioritize market rents over Section 8 tenants to maximize their returns. The gross yield comparison clearly shows that the actual market conditions offer a lower return, but potentially a higher likelihood of occupancy given the limited interest in Section 8 housing.
Investors should take into account these gross yields when evaluating potential investments in ZIP 11791. While the Section 8 program offers a guaranteed income source, the significantly lower gross yield compared to market rents means that the overall investment performance could be suboptimal. Therefore, focusing on market rents, despite the slightly lower gross yield, may be more prudent given the current rental dynamics and the low density of renters interested in Section 8 housing.
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.