Location: Cattaraugus County, NY | Metro: Cattaraugus County, NY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 14171 (West Valley, NY) for Section 8 should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a property priced at $216,945?
Yes. The FMR of $970 per month is designed to cover the average rental costs in the area, including utilities. For a property valued at $216,945, assuming typical financing terms, the FMR would likely exceed the monthly mortgage payment plus other expenses such as insurance and maintenance. This makes the property financially viable under Section 8.
No. If the FMR does not cover the debt service, then the property is not a good investment for Section 8. However, given the FMR and the property value, this scenario is unlikely unless there are unusually high financing costs or unexpected expenses.
2) How does the market rent of $643 compare to the FMR?
Above. If the market rent were above the FMR, it would suggest that the property could be rented at a higher rate than what Section 8 pays. In this case, the market rent is below the FMR, indicating that participating in Section 8 could potentially yield higher returns than renting to non-subsidized tenants.
At or Below. With the market rent at $643, which is below the FMR of $970, landlords can expect to receive higher rental income from Section 8 tenants compared to the general market. This difference provides an incentive to participate in the program.
3) Is there sufficient demand with 5.4% of residents being renters and the days on market (DOM) being N/A?
It Depends. While only 5.4% of residents are renters, the lack of data on days on market (DOM) means we cannot accurately assess how quickly properties are being rented. If the DOM is short, it indicates strong demand and a good opportunity for landlords. Conversely, if DOM is long, it suggests weak demand and potential difficulty in finding tenants.
In summary, for ZIP code 14171, the FMR adequately covers debt service, and market rents are below the FMR, making Section 8 participation attractive. However, the demand must be evaluated further to ensure that properties can be leased promptly. Landlords should seek additional local market insights to make a fully informed decision.
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.