Location: Cattaraugus County, NY | Metro: Buffalo-Cheektowaga, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 14134 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as determined by HUD for fiscal year 2024, stands at $1120. However, the market rent is currently unreported, indicated as N/A. This discrepancy means that landlords accepting Section 8 vouchers could potentially be renting properties below the open-market rate.
In the absence of market rent data, we can infer that the gap is entirely dependent on the FMR figure. If the market rent were higher than $1120, landlords would be renting their units below the typical market rate, which could result in a lower revenue stream compared to what they might receive from non-voucher tenants. Conversely, if the market rent is lower than or equal to $1120, then landlords would be receiving a rate that matches or exceeds the local market, making it a yield play.
The analysis must also consider the demographic context of ZIP 14134. With a median home value of $255,283, it suggests a relatively stable housing market. However, the lack of reported median income and the fact that only 0.0% of residents are renters indicate a very low density of rental properties in the area. This scarcity could imply that the demand for rental properties is minimal, and therefore, the acceptance of Section 8 vouchers might be seen as a way to ensure occupancy rather than maximize profit.
Landlords should weigh the benefits of guaranteed rental income through the voucher program against the potential drawbacks of renting below market rates. In ZIP 14134, where the rental market is underrepresented, maintaining property occupancy with the help of government subsidies could be a strategic move. Nonetheless, without precise market rent data, it's challenging to quantify the exact financial impact of this gap. The decision to participate in the Section 8 program should be made after careful consideration of these factors and the specific needs of the landlord's investment strategy.
Data Sources: FMR data from HUD (2027). 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.