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 | $1,810 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,480 | $761,008 | 0.33% | F |
| 3BR | $3,210 | $1,044,691 | 0.31% | F |
| 4BR | $3,400 | $1,271,745 | 0.27% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Greenport, NY (ZIP 11944), might have several valid concerns regarding the viability of investing in the area under Section 8 housing programs. Let's address these objections directly using the available data.
Will FMR $2,260 (zip FY 2024) cover the mortgage on a $960,572 home? The Fair Market Rent (FMR) for ZIP 11944 in fiscal year 2024 is set at $2,260 per month. This amount, however, does not guarantee full coverage of the mortgage on a $960,572 home. To provide a clearer picture, we need to consider the average mortgage rate and the typical monthly payment for such a property. With an average 30-year fixed mortgage rate, the monthly payment on a $960,572 home could be significantly higher than $2,260, especially when factoring in property taxes and insurance. Therefore, relying solely on the FMR might not suffice to cover the mortgage payments, suggesting that additional income sources or a lower-priced property should be considered.
Is there enough renter demand at 39.7%? The rental vacancy rate in ZIP 11944 is 39.7%, which is notably high. A high vacancy rate indicates a potential oversupply of rental units compared to demand, which could lead to difficulties in renting out properties. However, it's important to note that the presence of Section 8 housing can stabilize occupancy rates due to guaranteed rental income. Despite the high vacancy rate, the consistent demand from low-income households participating in the Section 8 program can mitigate some of the risks associated with a high vacancy rate.
Will vouchers keep pace with $2,084 market rents? The market rent for ZIP 11944 is $2,084 per month. While the Section 8 voucher program aims to cover a significant portion of this cost, it is crucial to understand that voucher amounts can vary based on the size of the unit and family composition. The FMR of $2,260 provides a benchmark, but actual voucher amounts may be lower. Landlords must ensure that their rental agreements align with the voucher limits to avoid the risk of non-payment. Given the data, there is no direct indication that vouchers will exactly match the market rents; thus, investors should prepare for potential discrepancies and adjust their expectations accordingly.
In conclusion, while ZIP 11944 presents certain challenges, particularly with high vacancy rates and potential gaps between market rents and voucher amounts, the benefits of stable income from Section 8 participants can still make it a viable investment opportunity. Careful consideration of these factors is essential before proceeding with any investment decisions.
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.