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 | $1,760 |
| 1 Bedroom | $1,800 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $2,960 |
| 5 Bedrooms | $3,434 |
| 6 Bedrooms | $3,846 |
| 7 Bedrooms | $4,154 |
| 8 Bedrooms | $4,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,590 | $305,570 | 0.85% | C |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase properties in ZIP code 14026 for Section 8 investment hinges on three key factors: Fair Market Rent (FMR), market rent comparison, and rental demand indicators. Let's break down each step.
Step 1: Does the FMR of $1300 cover the debt service on a $304,341 property?
No: The FMR does not sufficiently cover the debt service costs associated with a property valued at $304,341. A landlord would need to ensure that other income sources or subsidies can make up the shortfall.
Yes: Proceed to Step 2.
Step 2: Is the market rent of $2,338 (from Census ACS) above, at, or below the FMR?
Above: The market rent exceeds the FMR, indicating a potential premium for non-Section 8 tenants. This could be advantageous if the landlord plans to diversify their tenant base beyond just Section 8 participants.
At: The market rent aligns with the FMR, suggesting that the property will likely attract Section 8 tenants without much difficulty.
Below: The market rent is lower than the FMR, which might indicate an oversupply of Section 8 units or a weak market for non-subsidized rentals. This scenario could lead to prolonged vacancy periods.
Step 3: Are the rental demand indicators sufficient?
It depends: With 14.9% of residents being renters and the days on market (DOM) status marked as 'N/A', the demand for rental properties appears moderate. However, the lack of DOM data makes it challenging to assess how quickly properties are rented out. If the landlord can secure a steady stream of Section 8 applications, this ZIP code could still be viable.
In conclusion, purchasing a property in ZIP 14026 for Section 8 investment is contingent upon the landlord's ability to manage debt service costs and the overall rental market dynamics. The market rent exceeding the FMR suggests a potentially strong market, but the unclear demand due to missing DOM data requires further investigation. Landlords should also consider diversifying their tenant mix to mitigate risks.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.