Location: Rochester, NY | Metro: Rochester, 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 | $1,010 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $220,978 | 0.64% | D |
| 3BR | $1,710 | $281,791 | 0.61% | D |
| 4BR | $1,880 | $316,396 | 0.59% | F |
| 5BR | $2,181 | $359,197 | 0.61% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,170 for ZIP 14414 (Avon, NY) in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $269,674. Using a standard mortgage calculator, we can determine the monthly payment on a $269,674 home with a 30-year fixed-rate mortgage at 5%. The monthly mortgage payment would be approximately $1,450, which does not align with the FMR of $1,170. This indicates that the FMR may not fully cover the mortgage expenses.
The second objection could be regarding the rental market demand in Avon, NY, which stands at 27.5%. According to recent data, the housing median value in Avon, NY is $210,600, which is significantly lower than the national average of $338,100. Despite this lower median value, the 1-year house appreciation rate in Avon is above average at 11.08%. However, the rental market demand percentage alone does not provide a comprehensive view of the market's health. To truly assess demand, one must consider factors such as vacancy rates and the number of rental properties available. The current data does not offer these specifics, but the appreciation rate suggests a growing market that could attract more renters over time.
A final concern might be whether housing vouchers will keep pace with market rents, which are reported to be around $1,350. While the FMR of $1,170 is lower than the market rent, it's important to note that voucher amounts can vary based on individual qualifications and family size. In Avon, NY, the trend in voucher usage is not explicitly detailed in the available data. However, given the gap between FMR and market rents, it's possible that some voucher holders may struggle to find suitable housing. Landlords should be aware of the potential challenges in attracting tenants who rely solely on vouchers.
In summary, while the FMR of $1,170 may not fully cover the mortgage on a $269,674 home, the appreciation rate and rental demand suggest a growing market. However, the challenge of keeping pace with market rents using housing vouchers remains a concern. Investors should carefully evaluate these factors before making decisions.
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.