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 | $1,110 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $204,593 | 0.65% | D |
| 3BR | $1,630 | $239,347 | 0.68% | D |
| 4BR | $1,860 | $255,981 | 0.73% | D |
| 5BR | $2,158 | $282,940 | 0.76% | D |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 14225, located in Buffalo, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1,100, while the market rent, measured by the Zillow Rent Index (ZORI), stands at $1,399. This means landlords can expect a shortfall of $299 per unit if they rely solely on Section 8 vouchers. The gap represents a 26.4% discount off the market rate, indicating that voucher tenants pay considerably less than what an open-market tenant would.
In Buffalo, where 27.1% of residents are renters, the median home value is $226,145 and the median income is $67,237. These figures suggest that many residents struggle to afford housing, making the demand for affordable rental units high. However, for landlords, accepting Section 8 vouchers means accepting government-set rents that are lower than the market rate. This discrepancy can affect the profitability of rental properties and requires careful consideration when deciding whether to participate in the program.
The cost of housing voucher tenants below open-market rates includes not only the direct loss of rental income but also the administrative burden of dealing with the Section 8 program. Landlords must ensure their properties meet HUD standards, which can involve additional maintenance and compliance costs. Additionally, there may be delays in receiving rent payments due to bureaucratic processes.
Despite these challenges, some landlords might still find it beneficial to accept Section 8 vouchers. The consistent stream of rental income, albeit at a lower rate, can provide stability in a market where vacancy rates can fluctuate. Moreover, the demand for affordable housing is high, and being part of the Section 8 program can secure long-term tenants who are committed to paying their rent on time.
To conclude, the decision to participate in the Section 8 program in ZIP 14225 should be made with an understanding of the financial implications. While the gap between FMR and market rent poses a challenge, the benefits of stable occupancy and a reliable source of income should also be weighed against the potential risks and costs involved.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.