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 | $1,430 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $194,180 | 0.74% | D |
| 3BR | $1,710 | $244,805 | 0.7% | D |
| 4BR | $1,890 | $283,562 | 0.67% | D |
U.S. Census Bureau data (2024)
The analysis for Section 8 real estate in ZIP code 14445, which encompasses East Rochester, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1,320, while the market rent, as indicated by the Zillow Observed Rent Index (ZORI), is $1,900. This means that landlords can expect to receive $580 less per month from voucher tenants compared to open-market rates. The percentage gap between these two figures is approximately 42%, calculated as ($1,900 - $1,320) / $1,900 * 100.
In East Rochester, where 40.2% of residents are renters, the median home value is $227,576 and the median income is $73,625. Given these economic conditions, landlords might find it challenging to accept the lower rental rates offered by the Section 8 program. However, the decision to participate in the Section 8 program should be weighed against the stability it provides, as voucher tenants generally have their rent subsidized, leading to fewer instances of non-payment.
The cost of housing voucher tenants below open-market rates involves not only the financial loss but also the administrative burden of participating in the program. Landlords must undergo a thorough inspection process to ensure their properties meet HUD standards, and they must comply with annual inspections thereafter. Additionally, there's the potential for slower lease-up times due to the vetting process of tenants and the management of paperwork.
Despite the lower monthly rental income, the Section 8 program can still offer a stable investment opportunity for landlords and small-portfolio investors in East Rochester. It's important to consider the broader context of the local economy, where the median income is relatively low, and the demand for affordable housing is high. By participating in the program, landlords can ensure a steady stream of income, albeit at a reduced rate, which can be beneficial in a market where finding reliable tenants is a challenge.
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.