Section 8 Fair Market Rent (FMR) for ZIP 14150 - 2027

Investment Score for ZIP 14150

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	$1,260
1 Bedroom	$1,280
2 Bedrooms	$1,520
3 Bedrooms	$1,850
4 Bedrooms	$2,110
5 Bedrooms	$2,448
6 Bedrooms	$2,742
7 Bedrooms	$2,961
8 Bedrooms	$3,109

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,520	$218,184	0.7%	D
3BR	$1,850	$259,206	0.71%	D
4BR	$2,110	$292,143	0.72%	D
5BR	$2,448	$314,482	0.78%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 14150 (Tonawanda, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 14150 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $1420 per month. This represents 23.9% of the median household income in Tonawanda, which stands at $71,406. The FMR is designed to reflect the average rent that voucher holders can afford based on their income levels. However, it is important to note that the actual rents in the area might be higher than the FMR. For instance, the Zillow median price for a two-bedroom home in this ZIP code is $208,763. When we consider the price-to-FMR ratio, which is 12.3 times the FMR, it indicates that the actual rental costs could be significantly higher than the FMR. This means that voucher holders face constraints in finding affordable housing. A two-bedroom unit priced at $1420 per month would be challenging to locate, given the high price-to-FMR ratio. #### Affordability & Renter Profile In ZIP code 14150, 27.9% of the population are renters, indicating a significant portion of the community relies on rental housing. With a median household income of $71,406, the affordability of housing is a critical issue. The occupancy rate of 96.4% suggests that the rental market is quite tight, with most units occupied. This implies that there is a strong demand for rental properties, but the supply may not meet the needs of all renters, especially those relying on Section 8 vouchers. Given the high price-to-FMR ratio, it is likely that many renters in this ZIP code are paying more than the FMR for their housing. This creates a challenging environment for low-income households who need to stretch their budgets to cover rent and other living expenses. The tight market conditions also mean that landlords have less incentive to accept Section 8 vouchers, as they can often find tenants willing to pay above the FMR. #### Investor Angle From an investor perspective, the ZIP code 14150 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1420 per month, which is below the actual rental prices in the area. The Zillow median price for a two-bedroom home is $208,763, suggesting that the typical market value is much higher than the FMR. To determine if this ZIP code is cash-flow positive at FMR, we must consider the potential rental income versus the mortgage payment and other operating costs. Assuming a conservative mortgage interest rate of 5%, the monthly mortgage payment for a $208,763 property would be approximately $1070. Adding in typical operating costs such as property taxes, insurance, maintenance, and utilities, the total cost could easily exceed $1420. Therefore, it is unlikely that an investor would achieve positive cash flow solely by renting at the FMR. The investment grade for this ZIP code would be moderate to low, considering the tight rental market and the difficulty in finding properties that can be rented at or below the FMR. Investors should carefully evaluate the local rental market dynamics and the willingness of landlords to accept Section 8 vouchers before making any investment decisions. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like one-bedroom or studio apartments. These units typically have lower FMRs and may be more affordable for voucher holders. For example, the FMR for a one-bedroom unit is $1200, which is still below the typical market rental rates. This could provide a better opportunity for achieving positive cash flow. 2. **Consider Property Location**: Properties located in areas with a higher concentration of low-income households may have a greater likelihood of attracting Section 8 voucher holders. Investors should look into neighborhoods within ZIP code 14150 where the median income is closer to the national average, as these areas may be more receptive to Section 8 tenants. 3. **Negotiate with Landlords**: Investors should work closely with landlords to negotiate rental agreements that align with the FMR. This may involve offering incentives or providing management services to make the property more attractive for landlords to accept Section 8 vouchers. Additionally, investors should ensure that the properties they purchase are well-maintained and meet the necessary standards for voucher acceptance. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 14150 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow by renting at the FMR. Moreover, the limited availability of properties that can be rented at or below the FMR, combined with the relatively low percentage of renters (27.9%) compared to the overall population, suggests that the market is not particularly favorable for Section 8 investments. Investors should consider other ZIP codes with more favorable rental market dynamics and a higher proportion of renters who rely on Section 8 vouchers.

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.