Location: Seneca 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $137,474 | 1.03% | B |
| 3BR | $1,710 | $174,205 | 0.98% | C |
| 4BR | $1,880 | $187,295 | 1% | B |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 14433, Clyde, NY, reveals some key insights into the potential investment opportunities. For the purpose of this analysis, we will consider the Federal Market Rent (FMR) for a two-bedroom apartment, which is set at $1130 per month for FY 2024, and compare it against the market rent, which stands at $819 based on Census ACS data.
To derive the gross yield, we annualize these figures. The annualized FMR for a two-bedroom unit is $13,560 ($1130 x 12 months), while the annualized market rent is $9,828 ($819 x 12 months). Given that the median home value in ZIP 14433 is $155,602, we can calculate the implied gross yields for both scenarios:
Considering the 19.0% renter density in the area, the higher gross yield from Section 8 properties appears more favorable. However, the N/A-day Days on Market (DOM) indicates incomplete data, which could mean either a very active or inactive rental market. Despite this, the higher renter density suggests a robust demand for rental housing, supporting the viability of Section 8 investments over market-rent properties.
The Section 8 program provides a stable source of income, as rents are government-subsidized and typically paid directly to landlords. In contrast, market-rent properties face the risk of vacancy and lower rent collection rates, which can significantly impact the overall yield. Therefore, the 8.7% gross yield from Section 8 is more likely to be realized in practice compared to the 6.3% gross yield from market-rent properties, making Section 8 a more attractive option for landlords and small-portfolio investors in ZIP 14433.
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.