Location: Chautauqua County, NY | Metro: Chautauqua County, NY
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 | $750 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $179,135 | 0.6% | F |
| 3BR | $1,410 | $219,894 | 0.64% | D |
| 4BR | $1,470 | $242,659 | 0.61% | D |
| 5BR | $1,705 | $244,127 | 0.7% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 14063, Fredonia, NY, in Chautauqua County, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1,060 per month for fiscal year 2026. This figure is specific to this ZIP code, reflecting the localized rental market conditions.
However, the local market rent for a similar two-bedroom unit is reported at $866 per month based on Census ACS data. This difference is crucial when understanding the financial dynamics for landlords participating in the Section 8 program.
A landlord's actual reimbursement under a Section 8 voucher depends on several factors including the tenant's portion of the rent and utility allowances. Typically, tenants contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 per month, the tenant would pay about $450 towards rent. Utility allowances can vary but generally range between $100 to $200 per month, adding to the landlord's total reimbursement.
To illustrate, if the utility allowance is $150, the total reimbursement to the landlord would be the sum of the tenant's contribution and the utility allowance, which equals $600. Therefore, the landlord would receive $600 from the tenant and the utility allowance, and the remaining amount up to the SAFMR of $1,060 would be covered by the housing authority. In this scenario, the housing authority would pay the landlord $460.
This means that for a two-bedroom apartment in ZIP 14063, the typical reimbursement gap or surplus is calculated by comparing the SAFMR with the local market rent. Given the SAFMR of $1,060 and the local market rent of $866, there is a surplus where the housing authority pays more than the local market rent. The surplus is $194 per month, making it financially advantageous for landlords to participate in the Section 8 program in this area.
Landlords should note that while the SAFMR provides a cap for the housing authority's payment, the actual reimbursement will be the lesser of the SAFMR or the local market rent plus the tenant's portion and utility allowances. This ensures that landlords are not overpaid relative to the local market conditions but still receive a stable and predictable income stream.
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.