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 | $1,950 |
| 1 Bedroom | $2,270 |
| 2 Bedrooms | $2,670 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $3,650 |
| 5 Bedrooms | $4,234 |
| 6 Bedrooms | $4,742 |
| 7 Bedrooms | $5,121 |
| 8 Bedrooms | $5,377 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,670 | $2,373,238 | 0.11% | F |
| 3BR | $3,430 | $2,627,584 | 0.13% | F |
| 4BR | $3,650 | $3,795,157 | 0.1% | F |
| 5BR | $4,234 | $7,833,461 | 0.05% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 11932, Bridgehampton, NY, reveals a significant gap between the HUD Fair Market Rent (FMR) and the actual market rents. The HUD FMR for this area stands at $3430 for the fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates an average rent of $98,083. This disparity means that voucher tenants will only cashflow in premium units, as the FMR is substantially lower than the market rent.
To further understand the rental market dynamics, consider the median home value in Bridgehampton, which is $4,586,446. The rent-to-price ratio, calculated by dividing the annual rent ($98,083 * 12 months) by the median home value, comes out to approximately 0.27%. This low ratio suggests that the rental market is highly competitive, with property values far exceeding rental income potential.
Given the lack of specific data regarding the median days on market (DOM) and the percentage of homes that have been listed with price cuts, it's difficult to provide a precise snapshot of the current buy-versus-rent environment. However, the high median home value and low rent-to-price ratio indicate that the local real estate market favors homeownership over renting.
The strongest angle for Section 8 investors in this area is likely appreciation. With such a high median home value and limited supply of affordable rental properties, there is potential for long-term capital gains as the overall housing market continues to grow.
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.