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 | $1,320 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $236,216 | 0.68% | D |
| 3BR | $1,950 | $320,023 | 0.61% | D |
| 4BR | $2,220 | $412,352 | 0.54% | F |
| 5BR | $2,575 | $641,955 | 0.4% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 14216 in Buffalo, NY, reveals a market that balances between high yield and moderate stability. The Federal Market Rent (FMR) for the fiscal year 2024 is set at $1,320. This FMR figure is below the market rent of $1,414, indicating a potential upside for landlords who can secure rents closer to the market rate. However, the median home value in the area stands at $329,444, which is relatively high compared to the median household income of $69,629. This suggests that while yields might be attractive, the overall financial health of tenants could be a concern.
The stability of the market is influenced by several factors. With 54.4% of residents being renters, there is a significant demand for rental properties, but this also implies a competitive environment. The lack of data on days on market (DOM) makes it challenging to assess the speed at which properties are rented out, which is an important indicator of stability. However, the median household income provides some insight into the financial stability of the tenant pool. At $69,629, incomes are modest relative to the cost of living and home values, which could affect the ability of tenants to consistently pay higher rents.
In summary, ZIP 14216 presents a scenario where landlords can potentially achieve high yields if they can secure above-average rents. However, the financial stability of the tenant base is questionable due to the income levels relative to home values. This market leans towards being a high-yield zone with moderate stability concerns, rather than a steady cash-flow area. Landlords should carefully consider the local economic conditions and the potential risks associated with tenant turnover when deciding to invest in this ZIP code.
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.