Location: Genesee County, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $197,606 | 0.72% | D |
| 3BR | $1,710 | $275,883 | 0.62% | D |
| 4BR | $1,880 | $294,038 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 14416, located in Bergen, NY, reveals a significant difference between the federal market rent (FMR) and the market rent, impacting potential gross yields for property investors.
The Federal Market Rent for a two-bedroom apartment in ZIP 14416 for fiscal year 2024 is set at $1070 per month. This translates into an annualized rental income of $12,840. In contrast, the Census ACS reports the market rent for a similar unit at $783 per month, equating to an annualized rental income of $9,396.
To derive the implied gross yield, we use the median home value of $247,697 as our investment basis. For the FMR scenario, the gross yield is calculated as follows:
Given the renter density of 12.0%, it's important to note that the actual occupancy rates might be lower than the national average, which could affect the reliability of these gross yields. However, the FMR gross yield of 5.19% appears more favorable compared to the market rent gross yield of 3.79%.
The FMR scenario assumes participation in the Section 8 program, which guarantees a higher rental income but comes with additional administrative burdens and tenant restrictions. The market rent scenario reflects the current rental environment without government subsidies, yielding a lower gross income but potentially less stringent management requirements.
Considering the N/A-day DOM (Days on Market), there isn't sufficient data to determine how quickly properties are rented out in this area. However, the lower renter density suggests that finding tenants willing to pay the higher Section 8 rate might be challenging, making the market rent scenario more realistic despite the lower gross yield.
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.