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 | $1,070 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $222,932 | 0.58% | F |
| 3BR | $1,570 | $263,704 | 0.6% | F |
| 4BR | $1,790 | $286,785 | 0.62% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 14219 (Buffalo, NY) might have several concerns regarding the viability of investing in properties that participate in the Section 8 program. Here, we address those concerns with the available data.
Will Fair Market Rent (FMR) of $1070 cover the mortgage on a $250,270 home?
The FMR of $1070 for ZIP 14219 in fiscal year 2024 is the maximum amount a landlord can charge for a Section 8 rental unit. To determine if this covers the mortgage, consider the typical mortgage rate and term. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly mortgage payment for a $250,270 home would be approximately $1,245. This figure exceeds the $1070 FMR, indicating that FMR alone will not cover the mortgage payment. However, it's important to note that property values and interest rates fluctuate, and other factors such as property tax deductions and maintenance costs must also be considered.
Is there enough renter demand at 26.3%?
The 26.3% represents the percentage of households in ZIP 14219 that rent their homes. While this may seem low compared to some urban areas, it suggests a steady demand for rental units. The lower percentage could indicate a preference for homeownership in the area, but it does not necessarily mean there is insufficient demand for rentals. It's crucial to understand the local market dynamics, including the number of renters who qualify for Section 8 assistance and the overall vacancy rates, which are not provided here. A detailed market analysis would be necessary to confirm the adequacy of demand.
Will vouchers keep pace with $957 market rents?
The market rent of $957 is lower than the FMR of $1070, which means that landlords participating in the Section 8 program can still receive a higher rent through vouchers than the typical market rent. However, the concern over whether vouchers will keep up with market rents is valid. Historically, voucher amounts have lagged behind market rent increases in many areas. To address this, one must look at the trend of voucher payments versus market rents over time. Unfortunately, the data provided does not include historical trends or projections. It's advisable to consult the U.S. Department of Housing and Urban Development (HUD) for recent adjustments and trends in voucher payments for ZIP 14219.
In conclusion, while the data provides insights into the financial aspects of investing in Section 8 properties in ZIP 14219, it does not fully resolve all the investor's concerns. Additional research into local market conditions and historical trends of voucher payments would offer a clearer picture of the investment's potential.
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.