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 | $2,130 |
| 1 Bedroom | $2,490 |
| 2 Bedrooms | $2,920 |
| 3 Bedrooms | $3,760 |
| 4 Bedrooms | $4,000 |
| 5 Bedrooms | $4,640 |
| 6 Bedrooms | $5,197 |
| 7 Bedrooms | $5,613 |
| 8 Bedrooms | $5,894 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,920 | $1,845,815 | 0.16% | F |
| 3BR | $3,760 | $2,569,546 | 0.15% | F |
| 4BR | $4,000 | $3,902,850 | 0.1% | F |
| 5BR | $4,640 | $7,603,085 | 0.06% | F |
U.S. Census Bureau data (2024)
The ZIP code 11976, located in Water Mill, NY, is characterized by a relatively small population of 2,952 residents, where only 6.8% are renters. This indicates a predominantly owner-occupied community with a median household income of $180,250, reflecting a high socioeconomic status. The median home value in this area stands at an impressive $4,867,758, underscoring the affluent nature of the neighborhood.
Transitioning to the economic realities of renting, the Fair Market Rent (FMR) for ZIP 11976 as of fiscal year 2024 is set at $3,560. However, the actual market rent, measured by the Zillow Observed Rental Index (ZORI), is significantly higher at $105,111 per annum. This stark contrast between the FMR and the market rent highlights the premium that tenants are willing to pay for rental properties in this exclusive locale.
Given these figures, it's evident that ZIP 11976 is not an ideal location for a hands-off Section 8 voucher operator. The low percentage of renters and the substantial gap between FMR and market rents suggest that landlords would struggle to find enough qualified tenants to fill their units through the voucher program alone. Instead, the area is better suited for hands-on value-add buyers who can leverage the high-income demographics and luxury housing market to generate significant returns. These investors might focus on improving property quality to command higher rents or convert some units to market-rate rentals to capitalize on the robust local economy.
In summary, while the Section 8 program offers a base rent of $3,560, the potential for higher market rents at $105,111 annually makes this ZIP code more attractive for those willing to actively manage their investments and target the affluent tenant base. Landlords should consider the niche market dynamics and the need for strategic management to thrive in this upscale setting.
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.