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 | $1,910 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,610 |
| 3 Bedrooms | $3,360 |
| 4 Bedrooms | $3,560 |
| 5 Bedrooms | $4,130 |
| 6 Bedrooms | $4,626 |
| 7 Bedrooms | $4,996 |
| 8 Bedrooms | $5,246 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,610 | $340,489 | 0.77% | D |
| 3BR | $3,360 | $681,803 | 0.49% | F |
| 4BR | $3,560 | $844,138 | 0.42% | F |
| 5BR | $4,130 | $941,246 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 11949, Manorville, NY, reveals a stark contrast between the federal market rent (FMR) and the actual market rent when compared to the median home value.
For a two-bedroom property, the annualized FMR for FY 2024 is $2370. This translates into an implied gross yield of approximately 0.34%. The calculation is straightforward: $2370 divided by the median home value of $704,367 equals 0.34%. This low yield is indicative of the limited financial upside that Section 8 tenants can provide to landlords in Manorville.
In contrast, the Zillow Observed Rent Index (ZORI) for the same property type is $2,152 annually. This yields an implied gross rental yield of about 0.30%, calculated by dividing $2,152 by the median home value. Despite being slightly lower than the FMR-based yield, the ZORI figure is more reflective of the current market conditions and tenant behavior in Manorville.
Given the 13.5% renter density in Manorville, it's clear that the market rent scenario is more realistic. The renter density suggests that only a small portion of the population is actively seeking rental properties, which would likely drive down market rents due to lower demand. Additionally, the N/A-day DOM (days on market) indicates that there is insufficient data to determine how quickly rental units are filled, further supporting the argument that market rents are a better indicator of potential income.
While Section 8 provides a steady stream of income, the yields based on FMR are not competitive with typical investment returns. Therefore, landlords and small-portfolio investors should focus on the ZORI-based gross yield of 0.30% when evaluating the viability of Section 8 properties in Manorville. This yield is more aligned with the local rental market dynamics and offers a clearer picture of what to expect in terms of income from such investments.
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.