Location: Buffalo-Cheektowaga, NY | Metro: Buffalo-Cheektowaga, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,530 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,250 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 14261 reveals a few key points that are important for landlords and small-portfolio investors to consider.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 14261 for fiscal year 2024 is set at an annualized rate of $17,880 ($1490 per month). This figure is critical for understanding the potential income stream from tenants participating in the Section 8 program.
Unfortunately, the specific data regarding the median home value and the current market rent for ZIP 14261 is not available. However, we can still derive some useful insights. The implied gross yield when using the FMR for a two-bedroom apartment would be calculated based on the annual rent divided by the median home value. Without the exact home value, we cannot provide a precise percentage, but it's important to note that this yield would be lower than what might be achieved through market rents, assuming the latter is higher.
The renter density in ZIP 14261 is also not specified, making it challenging to estimate the proportion of the housing market that is rental-focused. Similarly, the days on market (DOM) for rental properties is unknown, which could impact how quickly a property is leased, particularly under Section 8.
In the absence of market rent data, it's reasonable to assume that the Section 8 FMR represents a conservative estimate of rental income. This means that the gross yield derived from the FMR is likely the minimum potential return on investment for a property in this ZIP code.
To determine which scenario is more realistic, investors must consider the local rental market conditions and the demand for Section 8 housing. If there is high demand for Section 8 units and low vacancy rates, the FMR-based gross yield becomes a more reliable indicator of actual returns. Conversely, if market rents are significantly higher and the local economy supports a strong rental market, the potential for achieving higher yields through market rents increases.
Ultimately, while the exact gross yield cannot be determined without complete data, the FMR provides a solid baseline for investment analysis. Landlords should use this figure to assess the viability of Section 8 properties in ZIP 14261 and compare it against potential market rents to understand the full range of possible returns.
Data Sources: FMR data from HUD (2027). 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.