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 | $1,360 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $324,676 | 0.51% | F |
| 3BR | $2,000 | $361,215 | 0.55% | F |
| 4BR | $2,280 | $461,616 | 0.49% | F |
| 5BR | $2,645 | $488,977 | 0.54% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 14072, located in Grand Island, NY, within the Buffalo-Cheektowaga, NY MSA metro area, reveals several key insights for potential landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 14072 in fiscal year 2024 is set at $1440, which is significantly lower than the market rent of $1973 as indicated by the Zillow Observed Rental Index (ZORI). This means that landlords could potentially charge a higher rent than the FMR, thus making the rent math favorable for those looking to maximize their rental income.
Secondly, the acquisition affordability is assessed based on the median home value of $380,152. With the median home value being relatively stable and no data available on days on market (DOM), it suggests that homes in this area are not particularly fast-moving or slow-moving. Additionally, the low 0.1% price-cut share indicates that homes are generally selling at or near their asking price, suggesting that the housing market is strong and not overly saturated with discounted properties. This makes acquisition in ZIP 14072 moderately affordable, especially when considering the potential for higher rental income.
Lastly, the tenant demand is analyzed through the lens of the local population and the percentage of renters. With a total population of 21,488 and a renter share of 18.4%, there is a substantial tenant base that could support rental properties. However, the relatively low renter share compared to other areas might indicate a preference for homeownership, which could affect the pool of potential tenants.
In conclusion, the rent math in ZIP 14072 works favorably due to the significant gap between the FMR and the market rent. Acquisition is moderately affordable given the median home value and the strong selling conditions without frequent price cuts. Tenant demand exists but is somewhat limited by the low renter share, indicating that while there are opportunities, they may be less abundant than in areas with a higher proportion of renters. Landlords and small-portfolio investors should proceed with confidence, leveraging the favorable rent-to-value ratio, but also be prepared to cater to a slightly smaller tenant pool.
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.