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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,130 | $460,784 | 0.46% | F |
| 3BR | $2,590 | $475,517 | 0.54% | F |
| 4BR | $2,960 | $716,269 | 0.41% | F |
| 5BR | $3,434 | $921,548 | 0.37% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,740 for ZIP 14032 (Clarence Center, NY) can sufficiently cover the mortgage on a home valued at $580,199. According to recent data, the median home value in this area suggests that a typical mortgage payment could range between $2,500 and $3,000 per month, depending on interest rates and down payments. At an FMR of $1,740, the rent collected would likely not cover the entire mortgage payment, indicating that landlords should consider other sources of income or have a substantial financial buffer to sustain such investments.
The second objection concerns the adequacy of renter demand, given that only 4.7% of the housing units are rented out. This low rental rate might suggest a limited pool of potential tenants. However, the local real estate market analysis reveals a steady increase in rental demand over the past few years, driven by new job opportunities and population growth. Despite the current low percentage, the trend indicates a growing need for rental properties, which could translate into a more robust tenant base in the future.
Lastly, an investor might be concerned about whether Housing Choice Vouchers will keep up with the market rents, currently estimated at $1,444. The voucher program aims to cover 30% of the area's median gross rent, which is around $1,010 for ZIP 14032. Given the discrepancy between voucher amounts and market rents, landlords should expect to absorb some of the difference or find alternative solutions to ensure profitability. It's worth noting that while the voucher program does not fully match the market rents, it still provides a significant subsidy, making it attractive for lower-income tenants and potentially stabilizing occupancy rates.
In summary, while the FMR of $1,740 may not fully cover the mortgage on a $580,199 home, the increasing rental demand trend offers hope for future stability. Additionally, the gap between voucher amounts and market rents requires careful consideration but does not necessarily preclude successful investment in this ZIP code.
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.