Section 8 Fair Market Rent (FMR) for ZIP 14138 - 2027

Location: Chautauqua County, NY | Metro: Cattaraugus County, NY

Investment Score for ZIP 14138

D
Monthly Rent (2BR)
$1,050
Median Price (2BR)
$133,201
1% Rule
0.79%
Annual Yield
9.46%

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$760
1 Bedroom$820
2 Bedrooms$1,050
3 Bedrooms$1,340
4 Bedrooms$1,480
5 Bedrooms$1,717
6 Bedrooms$1,923
7 Bedrooms$2,077
8 Bedrooms$2,181

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
2BR $1,050 $133,201 0.79% D
3BR $1,340 $152,884 0.88% C
4BR $1,480 $170,063 0.87% C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
2,046
Median Household Income
$56,868
Housing Units
977
Renter Percentage
30.2%
Occupancy Rate
84.1%
Renter Occupied
248

The Fair Market Rent (FMR) for ZIP 14138, which includes South Dayton, NY, is set at $1,020 for the metro area fiscal year 2026. This figure represents the payment standard for Section 8 vouchers, meaning that if you participate in the program, the government will pay up to $1,020 per month for your rental unit. It's important to note that this is not the amount that tenants will pay; it's the maximum subsidy the government will provide.

To put this into perspective, the average rent for the area based on Census American Community Survey data is $892. This indicates that the FMR is higher than the typical market rate, potentially making Section 8 participation financially attractive for landlords.

The demand for rentals in South Dayton is strong, with 30.2% of residents being renters. This high percentage suggests a robust market for rental properties, including those participating in the Section 8 program. With a median household income of approximately $142,655, potential investors should be aware that acquiring a property in this area can come at a premium. However, the higher FMR compared to the local average rent can help offset the initial investment costs.

Before deciding to enroll your property in the Section 8 program, verify that your unit meets the housing quality standards required by the program. These standards ensure that the property is safe, decent, and sanitary for tenants. Ensuring compliance with these standards is crucial for avoiding potential issues down the line.

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.