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 | $2,230 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,370 |
| 4 Bedrooms | $3,580 |
| 5 Bedrooms | $4,153 |
| 6 Bedrooms | $4,651 |
| 7 Bedrooms | $5,023 |
| 8 Bedrooms | $5,274 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,230 | $969,987 | 0.23% | F |
| 2BR | $2,620 | $1,132,892 | 0.23% | F |
| 3BR | $3,370 | $1,573,686 | 0.21% | F |
| 4BR | $3,580 | $2,496,785 | 0.14% | F |
| 5BR | $4,153 | $5,549,766 | 0.07% | F |
U.S. Census Bureau data (2024)
The real estate market in Southampton, NY (ZIP 11968), signals strong pricing power for the next 12-24 months. With a median home value at $2,154,589, only 0.1% of listings have been reduced, indicating that sellers maintain significant leverage over buyers. The non-availability of median days on market (DOM) data suggests that homes are selling quickly, often before reaching typical market durations.
This combination of high median home values and minimal price reductions points towards a robust seller's market where demand outstrips supply. Landlords and small-portfolio investors can capitalize on this dynamic by maintaining competitive listing prices without the need for frequent adjustments.
On the rental side, the Fair Market Rent (FMR) for ZIP 11968 is projected at $2,580 per month for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) stands at $38,504 annually. This gap between FMR and ZORI indicates that the rental market is also strong, with average rents significantly exceeding government estimates. Investors can expect steady rental income, bolstered by the high property values and limited availability of lower-priced alternatives.
For long-term holding strategies, the setup implied by these figures suggests a realistic appreciation thesis. High median home values coupled with rapid sales indicate an environment where property values are likely to remain stable or increase gradually over time. However, the lack of historical appreciation trends means caution is advised against expecting exponential growth. Instead, the focus should be on consistent, modest appreciation alongside strong rental yields.
Landlords and small-portfolio investors in Southampton, NY, should anticipate continued favorable conditions for both sales and rentals, enabling them to hold onto properties without pressure to reduce prices or rents. The market fundamentals support a strategy focused on maintaining high-quality assets and leveraging their scarcity to command premium prices and rents.
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.