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 | $329,142 | 0.65% | D |
| 3BR | $2,590 | $444,381 | 0.58% | F |
| 4BR | $2,960 | $596,887 | 0.5% | F |
| 5BR | $3,434 | $761,245 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 14051, East Amherst, NY, provides a clear picture of potential rental income versus property values. Using the Fair Market Rent (FMR) for a two-bedroom apartment at $1740 annually and the market rent (ZORI) at $2,126 annually, we can derive the gross yields against the median home value of $521,323.
First, let's annualize the FMR. The annualized FMR for a two-bedroom unit is $1740 * 12 = $20,880. Dividing this by the median home value gives us an implied gross yield of ($20,880 / $521,323) * 100 = approximately 3.9%. This is the yield if the property were rented at the FMR rate.
Next, consider the ZORI, which stands at $2,126 annually. The annualized market rent would be $2,126 * 12 = $25,512. When divided by the median home value, the implied gross yield becomes ($25,512 / $521,323) * 100 = approximately 4.9%. This represents the yield if the property were rented at the market rate.
The difference between these two yields is significant, reflecting the impact of government-subsidized rents versus market-driven rents. Given that only 18.5% of the population are renters, it is important to note that the demand for rental properties, particularly those under Section 8, might be lower compared to areas with higher renter densities.
The N/A-day Days on Market (DOM) suggests that there is either no recent data available or the market is stable, with properties not necessarily staying on the market for long periods. However, this does not provide a complete picture of the rental market dynamics.
In conclusion, while the market rent implies a higher gross yield at 4.9%, the actual achievable yield for a Section 8 property is likely closer to the 3.9% derived from the FMR. Investors should focus on the FMR-based yield when considering the potential returns from Section 8 properties in East Amherst, NY, due to the limited rental market and the specific nature of subsidized housing.
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.