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 |
|---|---|---|---|---|
| 3BR | $2,590 | $290,658 | 0.89% | C |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP Code 14091 in Lawtons, NY, centers on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for FY 2024 is set at $1740. However, the available data indicates that the market rent in this area is higher, with typical monthly housing costs for renter households exceeding $1740.
To illustrate the gap, consider the median home value of $275,064 and the median household income of $82,833. With only 12.9% of residents being renters, the demand for rental properties is relatively low, which could influence market rents. Despite this, the FMR does not reflect the true market conditions, leading to a scenario where landlords accepting Section 8 vouchers may see their rental income fall below open-market rates.
The discrepancy between FMR and market rent means that landlords might incur a loss if they solely rely on voucher payments. For instance, if the average market rent for a similar unit is $2000, the landlord would be receiving $260 less per month, a difference of approximately 15%. This financial gap can impact the overall profitability and yield of rental investments in ZIP 14091.
In conclusion, the analysis of the Section 8 program in ZIP 14091 reveals a significant gap between the FMR and market rent. This gap underscores the importance of understanding the local rental market dynamics and the potential financial implications for landlords accepting housing vouchers. Given the low percentage of renters and high median home values, it is crucial to factor in these differences when evaluating investment yields.
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.