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 | $2,520 |
| 1 Bedroom | $2,930 |
| 2 Bedrooms | $3,450 |
| 3 Bedrooms | $4,440 |
| 4 Bedrooms | $4,710 |
| 5 Bedrooms | $5,464 |
| 6 Bedrooms | $6,120 |
| 7 Bedrooms | $6,610 |
| 8 Bedrooms | $6,941 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,450 | $1,267,007 | 0.27% | F |
| 3BR | $4,440 | $1,692,540 | 0.26% | F |
| 4BR | $4,710 | $2,360,862 | 0.2% | F |
| 5BR | $5,464 | $4,447,532 | 0.12% | F |
U.S. Census Bureau data (2024)
The ZIP code 11937, located in East Hampton, NY, within the Nassau-Suffolk, NY HUD Metro FMR Area, presents an interesting opportunity for inclusion in a Section 8 portfolio strategy. This area is best suited as a cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) and the local market rental rates.
In fiscal year 2024, the FMR for ZIP 11937 is set at $3150 per month. However, the actual market rental rate stands at $40,958 per month, indicating a substantial gap that landlords can leverage to secure higher cash flows. The median home value in this ZIP code is also notably high at $1,919,413, which further underscores the premium nature of the real estate market here. Landlords can expect to generate considerable income from their properties, especially if they manage to attract tenants through Section 8 who are willing to pay the FMR.
The low price-cut share of 0.1% and the extended days on market (DOM) of 147 days suggest that properties in this area do not often require significant discounts to sell, and they may take longer to find buyers. This implies a stable, if not slowly moving, market, which can be advantageous for long-term rental investments. Additionally, with a renter share of 23.1%, there is a notable portion of the population already accustomed to renting, making it easier to find tenants.
The median income of $129,883 in ZIP 11937 is another factor that supports its role as a cash-flow anchor. High-income residents typically have the financial stability to handle unexpected expenses and maintain consistent rental payments, reducing the risk of default for landlords. Furthermore, the demand for affordable housing options under Section 8 in such a high-cost area can be strong, as many residents might seek assistance to manage living costs.
While appreciation plays and diversifiers are also important components of a well-rounded real estate investment strategy, the primary role of ZIP 11937 within a Section 8 portfolio should be as a cash-flow anchor. Its high market rental rates coupled with the relatively lower FMR make it a lucrative option for generating steady income, which can then be reinvested into other parts of the portfolio to achieve a balanced mix of income generation and asset appreciation.
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.