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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $188,001 | 0.76% | D |
| 3BR | $1,710 | $247,815 | 0.69% | D |
| 4BR | $1,880 | $284,538 | 0.66% | D |
| 5BR | $2,181 | $324,564 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 14522, located in Palmyra, NY, provides valuable insights into potential investment returns. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $1070 per month, while the Census ACS reports the average market rent for a similar unit at $944 per month.
To derive the cap-rate, we first annualize these figures. The annualized FMR for a two-bedroom apartment is $12,840 ($1070 x 12 months), and the annualized market rent is $11,328 ($944 x 12 months).
The median home value in ZIP 14522 is $228,506. Using this figure, we can calculate the implied gross yield for both scenarios. For the FMR scenario, the gross yield is approximately 5.62%, calculated as follows:
In the case of market rent, the gross yield drops to about 4.96%:
Given the 25.0% renter density in the area, it's important to consider the likelihood of finding tenants who qualify for Section 8. The higher FMR yield of 5.62% is attractive, but the actual gross yield is likely closer to the market rent scenario of 4.96%. This is because the availability of qualified Section 8 tenants is uncertain, and the vacancy rate could be higher than in a typical market rental situation.
The N/A-day DOM (days on market) indicates that there is insufficient data to determine how quickly properties are rented out. However, the lower renter density suggests that landlords might face challenges in filling units under the Section 8 program compared to the general rental market. Therefore, the more realistic gross yield for ZIP 14522 is the 4.96% based on market rent.
In conclusion, while the potential gross yield of 5.62% based on FMR is appealing, the practical considerations of tenant qualification and rental market dynamics suggest that a yield closer to 4.96% is more probable for landlords and small-portfolio investors in ZIP 14522.
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.