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 | $1,950 |
| 1 Bedroom | $2,270 |
| 2 Bedrooms | $2,670 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $3,650 |
| 5 Bedrooms | $4,234 |
| 6 Bedrooms | $4,742 |
| 7 Bedrooms | $5,121 |
| 8 Bedrooms | $5,377 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,430 | $2,991,401 | 0.11% | F |
| 4BR | $3,650 | $5,077,125 | 0.07% | F |
| 5BR | $4,234 | $10,129,991 | 0.04% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP 11962 for Section 8 properties follows these steps:
1) Does FMR ($3120) clear debt service on a $6,430,031 property?
No. The Fair Market Rent (FMR) of $3120 would not be sufficient to cover the debt service on a property valued at $6,430,031. Debt service typically includes mortgage payments, which would likely exceed the rental income generated at the FMR rate.
2) Is market rent above, at, or below FMR?
The market rent for ZIP 11962 is not available. Without this information, it's impossible to determine if the market rent exceeds, meets, or falls below the FMR. This lack of data means that you cannot accurately gauge the potential profitability of the property outside of the Section 8 program.
3) Are 4.4% renters and N/A-day DOM enough demand?
It depends. With only 4.4% of the population being renters, the demand for rental properties in ZIP 11962 appears low. However, without knowing the average days on market (DOM), it's difficult to assess how quickly properties are rented out. A high DOM could indicate a glut in the rental market, whereas a low DOM might suggest strong demand despite the small percentage of renters.
In summary, the FMR does not support debt service on a property of this size, making it an unviable investment solely based on Section 8 tenants. The absence of market rent data complicates the assessment of profitability beyond the program. The low percentage of renters combined with unknown DOM figures suggests that there may not be enough demand to ensure steady occupancy, but this needs further investigation into local rental dynamics and vacancy rates.
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.