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 | $1,080 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $184,409 | 0.71% | D |
| 3BR | $1,590 | $258,922 | 0.61% | D |
| 4BR | $1,820 | $324,800 | 0.56% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 14047, which includes Derby, NY, stands at $78,816. When compared to the market rate rent of $958 per month (as reported by the Census Bureau's American Community Survey), it becomes evident that a significant portion of households would struggle to afford market-rate housing without financial strain. This is particularly true when considering other living expenses and savings goals.
However, the situation changes with the availability of Section 8 vouchers. The Fair Market Rent (FMR) for ZIP 14047 in fiscal year 2024 is set at $1,150. This means that while market-rate rents are already challenging for many residents, the voucher program offers a higher payment standard than the current market rate. Landlords who accept Section 8 vouchers can potentially receive a monthly payment closer to the FMR, thereby securing a more stable and predictable income stream.
In ZIP 14047, with a population of 6,013 and 20.3% of the residents being renters, the affordability gap poses a significant challenge for both renters and landlords. For renters, finding affordable housing can be difficult given the disparity between their median income and the market rate rent. For landlords, this means increased competition for tenants who can pay the market rate, especially as many may lean towards the security and stability offered by voucher programs.
The takeaway for landlords is clear: accepting Section 8 vouchers can be a strategic move to ensure consistent rental income and attract tenants who might otherwise face difficulties in affording housing. Given that the voucher payment standard exceeds the current market rate, it provides an opportunity for landlords to align their rental rates with the FMR, thus benefiting from the federal subsidy while also helping to bridge the affordability gap in Derby, NY.
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.