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 | $1,020 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $212,505 | 0.58% | F |
| 3BR | $1,500 | $274,389 | 0.55% | F |
| 4BR | $1,710 | $271,266 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 14111, North Collins, NY, reveals interesting insights into potential investment returns. For a two-bedroom property, the Fair Market Rent (FMR) for FY 2024 is set at $1000 per month, while the Census ACS reports a market rent of $926 per month. Using these figures against the median home value of $242,111, we can calculate the implied gross yields.
First, let's annualize the FMR of $1000. This translates to an annual rental income of $12,000. Dividing this by the median home value of $242,111 gives us an implied gross yield of approximately 4.95%. Next, using the market rent figure of $926, the annual rental income would be $11,112. This results in an implied gross yield of about 4.59%.
The higher gross yield based on FMR suggests a better return for landlords participating in the Section 8 program. However, the reality of rental demand must also be considered. With a renter density of 27.0%, it indicates that a significant portion of the population is already renting, potentially creating competition for Section 8 tenants. The N/A-day Days on Market (DOM) figure suggests either limited data or a rapidly changing rental market, which could affect the ability to consistently lease properties at the FMR.
In conclusion, while the FMR-based gross yield of 4.95% is more attractive compared to the market rent-based gross yield of 4.59%, the actual performance may lean towards the lower figure due to the competitive rental environment and potential challenges in maintaining occupancy at FMR levels. Small-portfolio investors should carefully consider these factors when evaluating Section 8 investments in ZIP 14111.
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.