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 | $1,050 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $205,555 | 0.62% | D |
| 3BR | $1,550 | $232,488 | 0.67% | D |
| 4BR | $1,760 | $252,787 | 0.7% | D |
U.S. Census Bureau data (2024)
Skeptical investors often question the viability of investing in ZIP 14034, Collins, NY, due to concerns regarding the Fair Market Rent (FMR), rental demand, and the adequacy of housing voucher payments.
Objection 1: Will FMR of $980 cover the mortgage on a $214,007 home?
The FMR of $980 for ZIP 14034 in fiscal year 2024 may not sufficiently cover the mortgage on a home priced at $214,007. Assuming a typical 30-year fixed-rate mortgage at an interest rate of 5%, the monthly payment on such a property would be approximately $1,140. This means that the FMR falls short by around $160 per month. However, it's important to note that this calculation does not include other sources of income, such as co-payment from tenants or potential appreciation in property value over time.
Objection 2: Is there enough renter demand at 17.5%?
The 17.5% rental rate in ZIP 14034 suggests a relatively low demand for rental properties compared to areas with higher rates. While this percentage might indicate a challenge in finding tenants, it also implies that the market is less saturated with rental units, potentially leading to fewer competitive pressures. Additionally, the rental rate does not provide insight into the total number of renters or the vacancy rate, which are critical factors in assessing demand. To fully evaluate this objection, further analysis of the local rental market dynamics is necessary.
Objection 3: Will vouchers keep pace with $887 market rents?
The average market rent of $887 in ZIP 14034 is slightly below the FMR but still presents a challenge when considering housing vouchers. Voucher amounts can vary widely based on individual circumstances and the specific program guidelines. As of now, HUD has set the voucher payment standard for this area at $832, which is lower than the market rent. This discrepancy could mean that landlords might need to subsidize the difference between the voucher amount and the actual rent charged. It's crucial to monitor how HUD adjusts voucher amounts annually to ensure they remain competitive with market rents.
In summary, while the data raises valid points of concern for investors in ZIP 14034, particularly around the adequacy of FMR and voucher payments relative to market conditions, it does not fully address the long-term investment potential. Careful consideration of additional factors, such as property management costs, local economic trends, and the broader real estate market, is essential before making any investment decisions.
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.