Location: Seneca 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 | $1,010 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $152,521 | 0.93% | C |
| 3BR | $1,710 | $191,520 | 0.89% | C |
| 4BR | $1,880 | $220,807 | 0.85% | C |
| 5BR | $2,181 | $256,111 | 0.85% | C |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 13165 in Waterloo, NY, reveals several potential challenges that landlords must be prepared to face. First, tenant turnover can be problematic due to the disparity between the market rent of $929 and the Fair Market Rent (FMR) of $1140 for FY 2024. This gap suggests that tenants may struggle to afford even the market rate, leading to higher turnover rates as they seek more affordable housing options. Second, vacancy exposure is a significant concern, as the Days on Market (DOM) figure is currently unavailable. Without this data, it's difficult to predict how long a property might remain vacant, which can lead to substantial financial losses for the landlord. Third, deferred-maintenance exposure is a critical issue, considering the typical home value of $180,413 and the median income of $59,981. The median income is relatively low compared to the cost of maintaining a home, indicating that many residents may not have the financial capacity to cover necessary repairs and maintenance.
However, these risks must be weighed against the high proportion of renters in the area, which stands at 31.1%. High renter density typically correlates with a greater demand for rental properties, including those that accept Section 8 vouchers. This demand can help stabilize occupancy rates and provide a steady stream of income, despite the initial risks. Additionally, the presence of Section 8 vouchers can mitigate some of the financial pressures faced by tenants, potentially reducing the likelihood of default or eviction.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 13165 is moderate. While there are notable challenges, such as tenant turnover and deferred maintenance, the high renter density offers a buffer that can help manage these risks effectively.
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.