Location: Wyoming County, NY | Metro: Buffalo-Cheektowaga, 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 | $960 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $278,729 | 0.42% | F |
| 3BR | $1,420 | $332,957 | 0.43% | F |
| 4BR | $1,630 | $380,207 | 0.43% | F |
| 5BR | $1,891 | $416,499 | 0.45% | F |
U.S. Census Bureau data (2024)
ZIP 14004, located in Alden, NY, within the Wyoming County, NY metro area, presents itself as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the fiscal year 2024 is set at $1040 for a one-bedroom unit. This compares favorably against the market rent of $938, indicating a positive spread of $102 per unit. This spread ensures that properties in this ZIP code can be rented out under the Section 8 program at rates higher than the local market, thus providing a stable and reliable source of income.
The median home value in ZIP 14004 stands at $321,627. Given the relatively low market rent compared to the FMR, landlords and small-portfolio investors can expect to see a consistent cash flow from their properties. The difference between the FMR and the market rent suggests that there is a good margin for covering mortgage payments, maintenance costs, and other expenses associated with property ownership, leaving a healthy profit for the investor.
ZIP 14004 does not offer significant potential as an appreciation play due to the lack of data on price-cut shares and days on market (DOM). These metrics would typically indicate whether the housing market is experiencing growth or stagnation. However, without such data, it's difficult to make a case for appreciating values in this ZIP code.
While the ZIP code has a renter share of 14.8%, which could be considered when looking for diversification within a portfolio, the primary focus should be on the strong cash flow potential. The median income in the area is $90,839, which supports the stability of the tenant base, ensuring that there is a steady demand for rental properties. Landlords can leverage this by securing long-term tenants who are likely to have stable employment and thus can maintain timely rent payments.
In conclusion, ZIP 14004 serves best as a cash-flow anchor in a Section 8 portfolio strategy. The positive spread between the FMR and market rent provides a solid financial foundation, while the median income level supports a stable tenant population. This makes it an excellent choice for investors seeking consistent returns rather than speculative growth 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.