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 | $1,880 |
| 1 Bedroom | $2,180 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,310 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,310 | $1,185,935 | 0.28% | F |
| 4BR | $3,510 | $1,483,932 | 0.24% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 11935 reveals a stark contrast between the federal market rent (FMR) and the actual market rent. The annualized FMR for a two-bedroom unit in ZIP 11935 for FY 2024 is set at $2400. In comparison, the Census ACS data indicates a market rent of $2,120 for a similar unit. These figures provide insight into the potential gross yields for landlords participating in the Section 8 program versus those renting at market rates.
To calculate the gross yield, we use the median home value of $1,183,931 as our basis. For the FMR scenario, the annualized rent of $2400 translates to a gross yield of approximately 0.2%. This is calculated by dividing the annual rent by the median home value ($2400 / $1,183,931 = 0.002). On the other hand, the market rent of $2,120 results in an even lower gross yield of roughly 0.18%. This calculation is derived by dividing the annual market rent by the median home value ($2,120 / $1,183,931 = 0.00179).
The low gross yields suggest that for ZIP 11935, the returns on investment through rental income alone are minimal, regardless of whether the landlord opts for Section 8 or market rents. However, considering the renter density of 7.0%, it's clear that the demand for rentals is relatively low, which could make securing tenants at market rates challenging. Additionally, the N/A-day days on market (DOM) indicate incomplete data, possibly due to a lack of consistent rental activity, further suggesting that market rents might be less stable.
Given these factors, the Section 8 program offers a more predictable and stable income stream, despite the lower gross yield compared to market rents. Landlords should weigh the benefits of guaranteed tenants and steady income against the potentially higher but riskier market rents. The choice ultimately depends on the landlord's risk tolerance and investment goals.
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.