Location: Buffalo-Cheektowaga, NY | Metro: Buffalo-Cheektowaga, NY MSA
| 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 |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 14035 focuses on the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $980. However, the market rent for the area is currently unavailable, which makes it challenging to provide an exact percentage gap. Despite this lack of direct comparison, understanding the implications of the FMR figure in relation to the broader economic context is crucial.
In ZIP 14035, only 14.6% of residents are renters, indicating a predominantly owner-occupied market. The median household income stands at $91,250, suggesting a relatively affluent area. Given that the FMR is higher than the typical rental rates in many parts of the country, landlords in ZIP 14035 might find themselves in a position where accepting Section 8 vouchers could be a strategic yield play. Voucher tenants pay a portion of their income towards rent, typically around 30%, with the remainder covered by the government. This ensures a steady and reliable income stream for landlords, even if the overall rental rate is lower than what they might charge in the open market.
For instance, if a landlord charges $980 per month for a property, and the tenant's income is $91,250, they would contribute approximately $228.13 towards the rent, leaving the government to cover the remaining $751.87. This arrangement can protect against vacancy and provide a predictable cash flow, which is particularly beneficial in areas with high median incomes where finding tenants willing to pay market rates can be competitive.
While the median home value is not available, the income levels suggest that housing costs are likely to be a significant portion of the budget for renters. Accepting Section 8 vouchers means landlords agree to rent below the open-market rates, but this can be mitigated by the stability and security of the government subsidy. It's important for landlords to consider the administrative requirements and potential delays in receiving payments when deciding whether to participate in the program.
To summarize, the gap between the FMR and the market rent in ZIP 14035, while not fully quantifiable due to missing market rent data, suggests a scenario where Section 8 can be a valuable strategy for landlords seeking stable income. With a median income of $91,250, voucher tenants can offer a consistent yield, despite the lower rent compared to potential open-market rates.
Data Sources: FMR data from HUD (2027). 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.