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 | $2,100 |
| 1 Bedroom | $2,450 |
| 2 Bedrooms | $2,880 |
| 3 Bedrooms | $3,700 |
| 4 Bedrooms | $3,930 |
| 5 Bedrooms | $4,559 |
| 6 Bedrooms | $5,106 |
| 7 Bedrooms | $5,514 |
| 8 Bedrooms | $5,790 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,450 | $603,123 | 0.41% | F |
| 2BR | $2,880 | $768,712 | 0.37% | F |
| 3BR | $3,700 | $930,643 | 0.4% | F |
| 4BR | $3,930 | $1,165,941 | 0.34% | F |
| 5BR | $4,559 | $1,510,039 | 0.3% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Hampton Bays, NY (ZIP 11946) might raise several concerns regarding the feasibility of investing in Section 8 properties. Let's address these objections directly with the available data.
Will FMR $2560 (zip FY 2024) cover the mortgage on a $933,939 home?
The Fair Market Rent (FMR) for ZIP 11946 in fiscal year 2024 is set at $2560. This figure represents the average rent that can be charged for a property under the Section 8 program. To determine if this amount will cover the mortgage on a $933,939 home, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly mortgage payment would be approximately $4480. Clearly, the FMR of $2560 is insufficient to cover the mortgage payment of $4480. This means that landlords would have to rely on additional sources of income or accept a loss to make ends meet.
Is there enough renter demand at 18.1%?
The rental vacancy rate for ZIP 11946 is 18.1%. While this percentage indicates that there is some rental demand, it also suggests that there is a significant amount of rental housing available relative to the number of renters. An 18.1% vacancy rate is higher than what many investors would consider ideal, typically aiming for a lower vacancy rate to ensure steady cash flow. However, this rate does not necessarily mean that finding tenants will be difficult; it simply implies that competition among landlords could be fierce, which might affect rental prices and the speed at which units are filled.
Will vouchers keep pace with $13,753 market rents?
The median market rent for ZIP 11946 is reported to be $13,753. In contrast, the FMR for Section 8 is significantly lower at $2560. The disparity between these figures raises questions about whether voucher holders can afford to live in market-rate properties. It's important to note that Section 8 vouchers are designed to cover a portion of the rent, up to the FMR, while the tenant pays the remainder. Given the high market rents in ZIP 11946, voucher holders may struggle to find suitable housing without substantial out-of-pocket expenses. Investors should be prepared for a potential mismatch between voucher coverage and market rents, which could limit the pool of eligible tenants.
The data provides a clear picture of the challenges faced by investors in ZIP 11946. While the rental market exists, the high market rents and relatively low FMR suggest that landlords may face difficulties in covering their mortgage payments and attracting sufficient tenant demand through Section 8 alone. These factors should be carefully considered before making investment decisions.
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.