Location: Buffalo-Cheektowaga, 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 | $970 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,420 | $271,414 | 0.52% | F |
| 4BR | $1,620 | $294,394 | 0.55% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 14008 reveals key insights into potential investment returns. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for fiscal year 2024 is set at $1060 per month. When annualized, this translates to an income of $12,720 per year. Given the median home value of $248,679, the implied gross yield for a Section 8 rental property would be approximately 5.12%. This calculation is based on the assumption that the property can be converted to generate rental income at the FMR rate.
In contrast, the Census ACS reports the market rent for a 2-bedroom apartment in ZIP 14008 as $629 per month. Annualizing this figure results in a yearly income of $7,548. Using the same median home value, this scenario implies a gross yield of about 3.03%. These figures provide a direct comparison between the potential returns of a Section 8 rental versus a market-rate rental.
The 23.9% renter density suggests a significant portion of the population in ZIP 14008 is already renting, which could indicate a steady demand for rental properties. However, the lack of Days on Market (DOM) data makes it challenging to assess how quickly properties might be leased, especially under the Section 8 program. Despite this, the higher gross yield of 5.12% from the Section 8 scenario appears more favorable compared to the 3.03% from market rates, assuming the property qualifies and remains under the Section 8 program.
Investors should consider these gross yields as starting points for their due diligence process. While the Section 8 program offers a higher yield, it also comes with regulatory compliance requirements and potential limitations on tenant selection, which can affect the overall net operating income (NOI). Nonetheless, the data clearly shows that the Section 8 scenario provides a significantly better return on investment when compared to market rents, making it a potentially attractive option for those willing to navigate the program's intricacies.
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.