Section 8 Fair Market Rent (FMR) for ZIP 14224 - 2027

Investment Score for ZIP 14224

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	$1,300
1 Bedroom	$1,330
2 Bedrooms	$1,570
3 Bedrooms	$1,910
4 Bedrooms	$2,180
5 Bedrooms	$2,529
6 Bedrooms	$2,832
7 Bedrooms	$3,059
8 Bedrooms	$3,212

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	$1,570	$218,653	0.72%	D
3BR	$1,910	$297,009	0.64%	D
4BR	$2,180	$364,171	0.6%	F
5BR	$2,529	$371,271	0.68%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 14224 (Buffalo, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 14224 in Buffalo, NY, is set by HUD for 2026 as follows: - 0BR: $1220 - 1BR: $1260 - 2BR: $1480 - 3BR: $1810 - 4BR: $2060 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it is important to note that these rates are significantly lower than the actual rental market rates. For instance, the Zillow median price for a 2BR property is $207,571, which translates into a monthly mortgage payment that would be much higher than the FMR. The price-to-FMR ratio for a 2BR property is 11.7x, indicating that the actual rental market rates are substantially higher than the FMR. This creates a significant constraint for voucher holders, who may struggle to find units that accept their vouchers and fall within the specified rent limits. Given that the median household income in the area is $80,052, the FMR for a 2BR unit represents only 22.2% of the median income, suggesting that landlords might be reluctant to accept vouchers due to the low rent relative to market rates. #### Affordability & Renter Profile ZIP code 14224 has a population of 41,219, with 23.8% of residents being renters. This indicates that while there is a substantial rental market, it is not overwhelmingly dominated by renters. The occupancy rate of 95.1% suggests that the housing stock is relatively well-utilized, but it also implies that there could be some pressure on available units, especially those that are affordable. Given the median household income of $80,052, the majority of residents likely have the means to afford market-rate rentals. However, the 23.8% of renters could include a mix of individuals and families who rely on Section 8 vouchers to manage their housing costs. The high occupancy rate and the relatively low percentage of renters indicate that the market is neither overly tight nor oversupplied; it is balanced but with a strong preference for homeownership. #### Investor Angle From an investor perspective, the ZIP code 14224 presents a challenging environment for cash flow if the focus is solely on Section 8 vouchers. The FMR for a 2BR unit is $1480, which is far below the actual market rate. To illustrate, if a typical 2BR property were rented out at market rates, the monthly rent could be around $1750-$2000 based on the median home value. At FMR, the cash flow would be negative unless the property was purchased at a very low price or had minimal operating expenses. However, the investment grade of properties in this ZIP code could still be attractive for long-term investments, particularly if the goal is to hold onto assets rather than generate immediate cash flow. The high occupancy rate and the overall stability of the Buffalo housing market suggest that properties could appreciate over time, providing a solid foundation for future resale value. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high price-to-FMR ratio, investors should consider focusing on larger units such as 3BR and 4BR properties. These units have higher FMRs ($1810 and $2060 respectively), which could provide better cash flow when compared to smaller units. Additionally, larger units often command higher market rents, making them more attractive to non-voucher tenants. 2. **Consider Mixed-Income Developments**: Investors could explore developing mixed-income housing projects where a portion of the units are reserved for Section 8 voucher holders, while others are rented at market rates. This approach can balance the financial impact of lower rents from voucher holders with higher rents from market-rate tenants, potentially creating a more stable and diversified revenue stream. 3. **Utilize Local Housing Programs**: There may be local housing programs or incentives that can help offset the lower rents associated with Section 8 vouchers. For example, tax credits or subsidies for affordable housing developments could make the investment more financially viable. Investors should research and leverage these opportunities to enhance profitability. #### Bottom Line For Section 8-focused investors, ZIP code 14224 presents a challenging environment due to the low FMR relative to market rates. The recommendation would be to **Skip** this ZIP code for immediate cash flow generation. However, for investors looking to hold properties long-term and benefit from potential appreciation, **Hold** might be a more suitable strategy, especially if they can diversify their tenant base or take advantage of local housing incentives.

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.