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 | $1,890 |
| 1 Bedroom | $2,200 |
| 2 Bedrooms | $2,590 |
| 3 Bedrooms | $3,330 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,200 | $579,374 | 0.38% | F |
| 2BR | $2,590 | $1,066,958 | 0.24% | F |
| 3BR | $3,330 | $1,297,084 | 0.26% | F |
| 4BR | $3,540 | $2,306,023 | 0.15% | F |
| 5BR | $4,106 | $4,508,712 | 0.09% | F |
U.S. Census Bureau data (2024)
Westhampton Beach, NY, in ZIP code 11978, is a affluent coastal community with a population of 4,705 residents. Only 11.8% of the population are renters, indicating a primarily owner-occupied area. The median household income here is notably high at $125,179, reflecting the wealth of the area's inhabitants. Median home values also align with this prosperity, sitting at an impressive $1,623,766.
The rental market in Westhampton Beach presents a stark contrast between Federal Market Rent (FMR) and actual market rents. For fiscal year 2024, the FMR for a two-bedroom apartment is set at $2,580. However, the actual market rent, as measured by the Zillow Observed Rent Index (ZORI), stands significantly higher at $39,622 annually. This substantial gap suggests that the local rental market is robust and commands premium rates, which could be attractive for investors looking to capitalize on high rental yields.
Given these conditions, Westhampton Beach, NY, in ZIP code 11978, is likely better suited for a hands-on value-add buyer rather than a hands-off voucher operator. The high median income and median home values indicate a strong demand for quality rentals, but the low percentage of renters suggests that the market is not oversaturated. Investors who can improve property values and manage rentals effectively stand to benefit from the premium rents commanded in this exclusive area. On the other hand, hands-off operators might find the voucher program insufficient to cover the high costs associated with maintaining properties in such a pricey location.
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.