Section 8 Fair Market Rent (FMR) for ZIP 14221 - 2027

Investment Score for ZIP 14221

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	$1,630
1 Bedroom	$1,670
2 Bedrooms	$1,970
3 Bedrooms	$2,400
4 Bedrooms	$2,740
5 Bedrooms	$3,178
6 Bedrooms	$3,559
7 Bedrooms	$3,844
8 Bedrooms	$4,036

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	$1,970	$304,770	0.65%	D
3BR	$2,400	$378,680	0.63%	D
4BR	$2,740	$491,944	0.56%	F
5BR	$3,178	$594,794	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 14221 (Williamsville, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Williamsville, NY (ZIP 14221), as set by HUD for 2026, is $1820 for a two-bedroom apartment. This represents approximately 21.5% of the median household income of $101,615. However, the actual rental market price for a two-bedroom unit, based on Zillow data, is significantly higher at $293,141. The price-to-FMR ratio is 13.4x, indicating that the actual market rent is substantially above the FMR. This disparity creates significant constraints for Section 8 voucher holders. For instance, a voucher holder would find it challenging to secure a two-bedroom apartment at the market rate without substantial additional income. The FMR of $1820 is far below the median market rent, which means that landlords might be hesitant to accept vouchers due to the lower rent compared to what they could charge in the open market. #### Affordability & Renter Profile Given that 25.0% of the population are renters and the occupancy rate is 95.6%, it suggests that Williamsville has a relatively tight rental market. With a median household income of $101,615, the area is considered affluent, and the high occupancy rate indicates that there is little vacancy available for new tenants. The median income of $101,615 implies that the typical renter in Williamsville is likely to be middle-class or upper-middle-class individuals who can afford higher rents. However, the 25% of the population that rents suggests there is still a segment of the market that relies on affordable housing options. Given the high price-to-FMR ratio, it’s clear that the market is not particularly affordable for those relying solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the key question is whether the FMR can support positive cash flow. Given the Zillow median price for a two-bedroom home of $293,141 and the FMR of $1820, the market is not favorable for cash flow if investors are only considering FMR-based rents. The price-to-FMR ratio of 13.4x highlights that the property values are much higher than the rents supported by FMR. To determine the investment grade, we need to consider the potential for securing tenants willing to pay above FMR. In Williamsville, where the median income is high, there is a possibility that some tenants might be able to pay more than the FMR. However, the tight rental market and high occupancy rates suggest that competition for tenants is fierce, and landlords might struggle to fill units at FMR rates. #### Specific Actionable Insights 1. **Target Higher-Income Tenants**: Investors should focus on attracting tenants who can contribute additional income beyond the FMR. For example, a two-bedroom apartment at FMR ($1820) would need to be supplemented by additional income sources to achieve positive cash flow. One strategy could be to offer amenities or upgrades that justify higher rents, such as modern appliances, updated finishes, or additional storage space. 2. **Consider Larger Units**: Given that the FMR for larger units (3BR and 4BR) is $2220 and $2530 respectively, these units might be more attractive to investors. Although the price-to-FMR ratio remains high, larger units often command higher rents in the market, potentially making them more financially viable. For instance, a three-bedroom unit could be rented out at a rate closer to the actual market value, thereby reducing the gap between FMR and market rent. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow while adhering strictly to FMR guidelines. Investors looking to capitalize on the affluent nature of Williamsville might fare better by targeting higher-income tenants or offering larger units that can command higher rents. However, the primary challenge remains the significant gap between FMR and market rents, which poses a risk for those relying solely 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.