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 | $1,070 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $292,708 | 0.44% | F |
| 3BR | $1,570 | $431,490 | 0.36% | F |
| 4BR | $1,790 | $633,464 | 0.28% | F |
| 5BR | $2,076 | $955,465 | 0.22% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 14031, Clarence, NY, might raise several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Let's address these objections head-on with the available data.
Objection 1: Will FMR $1090 (zip FY 2024) cover the mortgage on a $501,217 home?
The Fair Market Rent (FMR) for ZIP 14031 in fiscal year 2024 is set at $1090 per month. To determine if this will sufficiently cover the mortgage, we need to consider the typical mortgage rate and term. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment on a $501,217 home would be approximately $2,650. Clearly, the FMR of $1090 is insufficient to cover such a mortgage. However, it's important to note that many homes in this area are priced lower, and some landlords might seek properties that are more affordable for the FMR level.
Objection 2: Is there enough renter demand at 19.4%?
The percentage of renter-occupied housing units in ZIP 14031 is 19.4%. This figure might seem low compared to urban areas with higher renter demand. However, it indicates that nearly one-fifth of the housing units are rented out, suggesting a stable but not overwhelming demand. While this may not be as high as some investors prefer, it still represents a significant portion of the market. Additionally, the demand for affordable housing can often exceed the supply, making Section 8 properties particularly attractive to renters.
Objection 3: Will vouchers keep pace with $947 market rents?
The average market rent in ZIP 14031 is $947 per month. The FMR of $1090 is designed to reflect the local rental market conditions and ensure that voucher holders can find suitable housing. It's crucial to understand that while the FMR is higher than the average market rent, this does not guarantee that all voucher payments will meet the FMR. The actual amount paid by the voucher program can vary based on individual circumstances and the availability of funds. Therefore, landlords should expect that voucher amounts may not always fully cover the FMR, and they must be prepared for potential discrepancies between the FMR and actual voucher payments.
In conclusion, while the data presents challenges such as the gap between FMR and mortgage costs, it also shows a steady demand for rental properties and a reasonable alignment between FMR and market rents. Investors should carefully evaluate their financial goals and the local real estate market before committing to a Section 8 investment strategy in ZIP 14031.
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.