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 | $1,280 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,810 | $251,160 | 0.72% | D |
| 3BR | $2,180 | $308,176 | 0.71% | D |
| 4BR | $2,390 | $427,217 | 0.56% | F |
| 5BR | $2,772 | $499,120 | 0.56% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 14425, located in Farmington, NY within the Rochester, NY MSA, reveals several key points regarding its viability for rental investment.
The first question concerns whether the rent math works. The Fair Market Rent (FMR) for ZIP 14425 in fiscal year 2024 is set at $1610, which is significantly lower than the market rent of $2,033 as indicated by ZORI. This suggests that landlords can potentially charge above the FMR, making it financially viable to rent properties in this area if they aim to attract tenants paying market rates.
Secondly, regarding acquisition affordability, the median home value in ZIP 14425 stands at $319,757. However, due to the lack of data on days on market (DOM) and the percentage of homes requiring price cuts, it's challenging to assess the ease of acquiring properties at this median value. Investors should consider negotiating strategies and possibly targeting below-market-value properties to ensure profitability.
Finally, the tenant demand in ZIP 14425 is substantial. With a total population of 13,839 and a renter share of 28.1%, there are approximately 3,887 renters in the area. This indicates a stable pool of potential tenants, supporting the feasibility of rental investments in this region.
Verdict: ZIP 14425 presents a favorable opportunity for rental investments. The discrepancy between the FMR and market rent allows landlords to charge higher rates, aligning with tenant expectations. Although the median home value is relatively high, the strong tenant demand, evidenced by the significant number of renters, supports the potential success of rental properties in this area. Landlords should focus on strategic acquisitions and market-rate pricing to capitalize on these conditions.
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.