Location: Chautauqua County, 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 | $980 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $215,778 | 0.57% | F |
| 3BR | $1,510 | $255,014 | 0.59% | F |
| 4BR | $1,690 | $348,471 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 14081, specifically Irving, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1110, while the Census American Community Survey (ACS) reports the market rent at $861. This means that the FMR is $249 higher than the market rent, or approximately 29% above the market rate.
In this scenario where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage the difference to increase their yields. The guaranteed rental income from Section 8 vouchers, which is based on the FMR, provides a stable and higher revenue stream compared to what might be obtained from open-market renters. Given that only 18.3% of residents in Irving are renters, the demand for rental properties is relatively low, making it challenging to attract non-voucher tenants willing to pay higher rents. Therefore, accepting Section 8 tenants ensures a steady occupancy rate and a predictable cash flow, which is particularly beneficial given the high median home value of $226,585 and median income of $65,778 in the area. These figures suggest that many residents may prefer homeownership over renting, further justifying the focus on voucher tenants to maintain a competitive edge in the local rental market.
However, it's important to consider the potential costs associated with housing voucher tenants. While the FMR provides a higher rental rate, there could be additional administrative burdens and compliance requirements that come with participating in the Section 8 program. Landlords must ensure that their properties meet certain quality standards and that they adhere to federal guidelines regarding rent increases and tenant selection. Despite these considerations, the financial advantage of receiving a higher rent payment through Section 8 vouchers outweighs the drawbacks in a market where the supply of renters is limited.
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.