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 | $1,160 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $280,774 | 0.5% | F |
| 3BR | $1,700 | $363,468 | 0.47% | F |
| 4BR | $1,950 | $520,905 | 0.37% | F |
| 5BR | $2,262 | $472,082 | 0.48% | F |
U.S. Census Bureau data (2024)
Lancaster, NY, with a total population of 35,635, is a residential area where 16.5% of the residents are renters. The median household income stands at $99,499, indicating a relatively affluent community. The median home value is notably high at $371,114, reflecting the overall economic status of the area. This suggests that homeownership is prevalent, and those who do rent are likely paying premium rates.
The rental market in ZIP 14086 presents an interesting opportunity for investors. According to the Fair Market Rent (FMR) set by HUD for the fiscal year 2024, the benchmark for subsidized housing is $1,140. In stark contrast, the market rent as measured by Zillow's ZORI index is $1,582. This significant gap between the FMR and the actual market rent highlights a potential inefficiency in the current subsidy system, offering opportunities for both hands-off voucher operators and hands-on value-add buyers.
For hands-off voucher operators, the ZIP code offers a stable environment given the high median income and the established presence of subsidized housing. However, the difference between the FMR and market rent means that landlords might face a challenge in covering operating costs if they solely rely on Section 8 tenants without considering additional revenue streams or economies of scale.
A hands-on value-add buyer could leverage the disparity between FMR and market rents to create a competitive advantage. By focusing on property improvements that enhance tenant satisfaction and potentially increase the rental value above the FMR, such investors can attract a mix of Section 8 tenants and market-rate renters. This strategy would allow for higher occupancy rates and better financial returns.
In summary, ZIP 14086 in Lancaster, NY, is an area with a strong economic foundation, where the rental market offers both challenges and opportunities. Investors should carefully consider their approach, whether it be a hands-off strategy focusing on stability or a hands-on approach aiming to maximize returns through value addition.
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.