Section 8 Fair Market Rent (FMR) for ZIP 14094 - 2027

Investment Score for ZIP 14094

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,080
1 Bedroom	$1,110
2 Bedrooms	$1,310
3 Bedrooms	$1,590
4 Bedrooms	$1,820
5 Bedrooms	$2,111
6 Bedrooms	$2,364
7 Bedrooms	$2,553
8 Bedrooms	$2,681

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,110	$130,816	0.85%	C
2BR	$1,310	$207,896	0.63%	D
3BR	$1,590	$271,396	0.59%	F
4BR	$1,820	$349,392	0.52%	F
5BR	$2,111	$359,773	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 14094 (Lockport, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 14094, as per the 2026 figures, is set at $1240 for a two-bedroom apartment. This represents approximately 19.7% of the median household income of $75,427, indicating that it is within a reasonable affordability range for low-income families. However, the actual rent charged by landlords can be significantly higher. The Zillow median price for a two-bedroom home in this area is $195,374, which translates to a monthly rental cost of around $1628 based on typical mortgage payments and property taxes. This means that the actual rent is about 13.1 times the FMR, suggesting that landlords who participate in the Section 8 program might face significant financial constraints. They would need to adjust their expectations to align with the FMR, which could reduce their profit margins compared to market rates. #### Affordability & Renter Profile With 28.1% of the population being renters, Lockport has a moderate rental market. The occupancy rate of 93.4% indicates that the housing stock is relatively well-utilized, but there is still some room for new rentals to enter the market. Given the median household income of $75,427, the FMRs are generally affordable for those receiving Section 8 vouchers. For instance, a three-bedroom apartment at $1510 per month is only 20% of the median income, making it a viable option for low-income families. However, the high price-to-FMR ratio suggests that the market is tight, and many renters may struggle to find affordable housing outside of the Section 8 program. #### Investor Angle From an investor perspective, participating in the Section 8 program in ZIP code 14094 could be financially challenging due to the high price-to-FMR ratio. While the FMRs are set to ensure affordability for low-income families, they are far below the market rates. A two-bedroom apartment renting at $1240 per month would generate less revenue compared to the market rate of $1628. This discrepancy could result in negative cash flow if investors do not manage costs effectively. Additionally, the investment grade for properties in this ZIP code would likely be lower due to the limited potential for rental income growth. Investors should carefully consider the long-term implications of tying their properties to the Section 8 program, given the lower rental rates and the regulatory requirements associated with the program. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units such as one-bedroom apartments, where the FMR is $1050. This is still a significant discount from the market rate but offers a better balance between affordability and potential cash flow. One-bedroom units are often more sought-after by single individuals or couples, providing a stable tenant base. 2. **Consider Cost Reduction Strategies**: To make Section 8 properties financially viable, investors should explore cost reduction strategies. This could include reducing maintenance expenses through energy-efficient upgrades, lowering utility costs, or finding ways to minimize property management fees. By keeping operating costs low, investors can maximize their net income despite the lower rental rates. 3. **Evaluate Location-Specific Factors**: While the overall market in ZIP code 14094 appears tight, certain neighborhoods within the ZIP code might offer better opportunities. Investors should conduct a detailed neighborhood analysis to identify areas with lower market rents or higher demand for subsidized housing. This could help in securing a more favorable cash flow position. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 14094 is to **Skip** this market unless they can find ways to significantly reduce operating costs or identify niche opportunities within specific neighborhoods. The financial constraints imposed by the FMRs, combined with the high market rates, make it difficult to achieve positive cash flow without substantial adjustments to the business model. Therefore, investors should look for other ZIP codes with a more favorable price-to-FMR ratio or consider alternative investment strategies that do not rely solely on Section 8 vouchers.

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.