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 | $1,030 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $164,901 | 0.75% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 14126 (Olcott, NY) is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 14126 is set at $1160 for fiscal year 2024. In contrast, the median monthly rent for a two-bedroom apartment in Olcott is $1120. This indicates that the FMR is slightly higher than the market rent, creating a gap of $40, or approximately 3.57%.
The higher FMR means that voucher tenants can potentially pay closer to the open-market rates for rentals, making it a yield play for landlords and small-portfolio investors. Given that only 14.9% of the population are renters, and the median home value is $178,688, the rental market represents a niche but valuable segment. With a median income of $167,723, many residents may find it challenging to afford homeownership, thus relying on rental properties.
The rental market's dynamics are further influenced by the fact that the median age of homes in Olcott is 78 years old, indicating a predominantly older housing stock. This could present opportunities for renovation and modernization, particularly for multi-family units that might attract voucher tenants. Additionally, the strong appreciation rate of 15.9% over the past year, compared to the national average of 16.6%, suggests that the overall real estate market in Olcott is robust and growing, which can benefit both homeowners and investors.
In summary, the slight edge of the FMR over the market rent makes Olcott a favorable location for landlords and small-portfolio investors, especially those willing to accommodate voucher tenants. This scenario allows for a better yield while still being competitive in the local rental market.
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.