A system for grading defective bit patterned magnetic media by disk sector in hard disk drives recovers a portion of any defective sectors at a lower areal density. The invention reduces the track pitch density for sectors containing amalgamated islands while leaving the remainder of the defect-free sectors in the zone optimized for linear bit density. This recovers a portion of the defective sector, approximately in proportion to the ratio of amalgamated islands over the original number of islands. A typical zone is first optimized for tracks per inch during formatting of the patterned media disk drive. The zone is then broken up into sectors that can each be optimized separately for linear bit density to ensure the maximum sustainable capacity for each sector.