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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,430 | $797,044 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 11972 provides insight into potential investment returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $2190 per month. Annualizing this figure gives us an annual rental income of $26,280.
To derive the implied gross yield based on the FMR, we use the median home value of $756,993. The calculation is straightforward: divide the annual rental income by the property value. This results in an implied gross yield of approximately 3.47%. For context, a typical cap rate does not include expenses such as maintenance, insurance, and property taxes, so this yield represents the upper limit of potential returns without these considerations.
However, the market rent for 11972 is listed as N/A, indicating that there is no specific data available for comparison. In the absence of market rent data, it's challenging to provide a precise gross yield for the market scenario. Yet, we can infer that if market rents were higher than the FMR, the gross yield would also be higher, potentially offering better returns for investors willing to navigate the complexities of market fluctuations.
Given the 49.4% renter density in 11972, it suggests a balanced housing market where nearly half of the residents are renters. This could imply a steady demand for rental properties, including those under the Section 8 program. However, the lack of Days on Market (DOM) data makes it difficult to assess how quickly properties are leased out, which is a critical factor in determining the feasibility and profitability of such investments.
In conclusion, while the Section 8 scenario offers a calculable gross yield of 3.47%, the absence of market rent data means we cannot provide a direct comparison. Investors should consider the stability and predictability of Section 8 rents versus the potential for higher yields in a robust market rental environment, keeping in mind the 49.4% renter density and the need for up-to-date market insights to make informed decisions.
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.