Location: Wyoming 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 | $211,136 | 0.67% | D |
| 3BR | $1,710 | $241,231 | 0.71% | D |
| 4BR | $1,880 | $276,069 | 0.68% | D |
U.S. Census Bureau data (2024)
In analyzing the real estate investment potential in ZIP code 14525, Pavilion, NY, several key concerns arise regarding the feasibility of rental properties under Section 8. Let's address these objections directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1070 for ZIP 14525 cover the mortgage on a $227,068 home?
The FMR of $1070 is the maximum amount that HUD will pay for rental housing in Pavilion, NY. To determine if this covers a mortgage, we must consider the interest rate and loan term. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment on a $227,068 home would be approximately $1200. At first glance, the FMR does not cover the mortgage payment. However, it's important to note that property taxes and insurance can also be reimbursed through the Section 8 program, which could help bridge the gap. Additionally, some landlords negotiate with tenants to cover additional costs beyond the FMR.
Objection 2: Is there enough renter demand at 6.9%?
The rental vacancy rate of 6.9% indicates that there is a moderate level of competition among landlords. This percentage is slightly above the national average, suggesting that Pavilion, NY, has a relatively balanced market. While this might seem low, it's crucial to understand that the rental market is cyclical and influenced by local economic conditions. The data does not provide a comprehensive view of tenant demand, but historically, a vacancy rate below 10% is considered healthy and indicative of steady demand.
Objection 3: Will vouchers keep pace with $912 market rents?
The voucher amount set by HUD at $1070 is higher than the current market rent of $912, indicating that vouchers should adequately cover the cost of renting a typical unit. However, the question of whether vouchers will keep pace with future market changes is less clear. HUD adjusts FMRs annually based on changes in the local rental market, but these adjustments may lag behind actual market conditions. It's advisable to monitor both voucher amounts and local rental trends closely to ensure financial stability.
Investing in ZIP 14525 under Section 8 requires careful consideration of these factors. The data suggests that while there are challenges, particularly with covering mortgage payments, the overall market conditions are favorable for maintaining a steady stream of tenants and receiving competitive rental rates.
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.