Location: Cayuga County, NY | Metro: Rochester, NY MSA
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 | $1,020 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $179,366 | 0.79% | D |
| 3BR | $1,710 | $202,772 | 0.84% | C |
| 4BR | $1,900 | $214,879 | 0.88% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 13143, Red Creek, NY, provides insight into potential investment returns. To calculate the cap rate, we first need to establish the annualized rental income and compare it against the median home value.
Based on the Fair Market Rent (FMR) for a 2-bedroom apartment in FY 2024, the annualized rental income under the Section 8 program would be $12,840 ($1070 x 12 months). Given the median home value of $180,107, the implied gross yield for a property rented through Section 8 would be approximately 7.13%. This is derived by dividing the annual rental income by the median home value.
In contrast, using the market rent figure of $1,146 (from Census ACS), the annualized market rent income would be $13,752 ($1,146 x 12 months). The implied gross yield based on market rent would then be around 7.64%, calculated similarly by dividing the annual market rent by the median home value.
Given the renter density of 9.3% in Red Creek, NY, the market rent scenario appears more realistic. However, the N/A-day DOM (Days on Market) suggests that there might be limited data on how quickly properties are rented out, which could affect the reliability of the market rent estimate.
The gross yield comparison shows that renting through the market yields a slightly higher return at 7.64% compared to the Section 8 program's 7.13%. For investors, this means that while Section 8 provides stable, government-backed rental income, the market rent offers a marginally better gross yield. Nonetheless, the stability and security of Section 8 contracts should also be considered when evaluating investment opportunities.
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.