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 | $2,160 |
| 1 Bedroom | $2,520 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,810 |
| 4 Bedrooms | $4,040 |
| 5 Bedrooms | $4,686 |
| 6 Bedrooms | $5,248 |
| 7 Bedrooms | $5,668 |
| 8 Bedrooms | $5,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 4BR | $4,040 | $2,688,223 | 0.15% | F |
U.S. Census Bureau data (2024)
ZIP code 11954, located in Montauk, New York, presents a unique blend of yield and stability for real estate investors. The Federal Market Rent (FMR) for the area is set at $3,100 for fiscal year 2024, which contrasts sharply with the average market rent of $37,333. This significant disparity indicates that 11954 is a high-yield market, where investors can expect above-average returns on rental properties.
The median home value in 11954 is $1,915,195, reflecting the luxury nature of the real estate market here. However, the recent trend shows a decline in home values, with a 19.2% decrease in January 2026 compared to the previous year, leading to a median sale price of $1.6M. Despite this dip, the overall high median home value suggests that 11954 remains a premium market.
In terms of stability, the data reveals that 21.3% of residents are renters, indicating a relatively low percentage of tenants compared to homeowners. This figure is crucial as it suggests that the majority of the population in Montauk owns their homes rather than renting them. Additionally, the median household income in the area is $142,961, which is quite robust and supports higher rental prices and property values.
The lack of data on days on market (DOM) makes it challenging to assess the liquidity of the market. However, given the high median home value and median rent, it is reasonable to infer that the market is stable but less liquid due to the luxury nature of the properties and the high percentage of owner-occupied homes.
Classification: ZIP code 11954 is best described as a steady-cashflow zone. While it offers high yields due to the substantial difference between FMR and market rent ($3,100 vs. $37,333), the market's stability is underpinned by the high median household income and the dominance of owner-occupied homes. The recent decline in home values does not negate the overall premium status of the market, making it a reliable investment choice for those seeking consistent cash flow.
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.