Section 8 Fair Market Rent (FMR) for ZIP 14580 - 2027

Investment Score for ZIP 14580

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,260
1 Bedroom	$1,430
2 Bedrooms	$1,790
3 Bedrooms	$2,160
4 Bedrooms	$2,360
5 Bedrooms	$2,738
6 Bedrooms	$3,067
7 Bedrooms	$3,312
8 Bedrooms	$3,478

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,790	$315,556	0.57%	F
3BR	$2,160	$370,713	0.58%	F
4BR	$2,360	$463,753	0.51%	F
5BR	$2,738	$583,332	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 14580 (Webster, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 14580 in Webster, NY, is set by HUD for 2026. The FMR values are as follows: - 0BR: $1400 - 1BR: $1580 - 2BR: $1980 - 3BR: $2390 - 4BR: $2620 These FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent. However, actual rents in the area often exceed these figures. For instance, the Zillow median price for a 2BR property is $303,493, which translates to a monthly mortgage payment significantly higher than the FMR. The price-to-FMR ratio of 12.8x suggests that even if a property is priced at the median, it would be challenging for voucher holders to find affordable housing due to the high cost of ownership. Additionally, the 2BR FMR ($1980) represents only 24.2% of the median household income ($98,310), indicating that voucher holders have limited financial flexibility beyond rent payments. This constraint makes it difficult for them to cover other living expenses such as utilities, food, and transportation. #### Affordability & Renter Profile ZIP code 14580 has a population of 54,180, with 28.6% being renters. Given the occupancy rate of 97.2%, the rental market appears to be relatively tight, suggesting that there is a strong demand for rental properties. The median household income of $98,310 indicates that the area is moderately affluent, but the high proportion of renters relative to homeowners implies that many residents may still struggle with affordability. The FMR for 2BR units is $1980, which is well below the typical rent levels in the area. This discrepancy means that Section 8 voucher holders might face challenges finding suitable housing within their budget. The high price-to-FMR ratio further underscores the difficulty in securing affordable rentals. #### Investor Angle From an investor perspective, the ZIP code 14580 presents mixed opportunities. While the occupancy rate is high, indicating a robust rental market, the price-to-FMR ratio of 12.8x suggests that properties priced at the median will not generate positive cash flow when rented out under the Section 8 program. To illustrate, consider a 2BR unit priced at the Zillow median of $303,493. Assuming a conservative mortgage rate of 4.5% and a 20-year amortization period, the monthly mortgage payment would be approximately $1,920. Adding property taxes, insurance, and maintenance costs, the total monthly expense could easily exceed the FMR of $1980. Therefore, investors relying solely on Section 8 vouchers would likely incur losses unless they can secure properties at a much lower price point. Given the high cost of ownership and the limited financial capacity of voucher holders, the investment grade for this ZIP code is low for Section 8-focused investors. The market dynamics suggest that the focus should be on properties that can command higher rents or are located in areas where the FMR is closer to actual rent levels. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties:** Investors should target properties with rents closer to the FMR levels. For example, a 1BR unit renting for $1580 or a 2BR unit renting for $1980 would be more feasible for Section 8 voucher holders. This strategy would help ensure that the properties remain occupied and generate positive cash flow. 2. **Consider Alternative Rental Programs:** Given the high price-to-FMR ratio, investors might want to explore alternative rental programs that offer higher subsidies or consider non-Section 8 tenants who can afford higher rents. This approach could mitigate the risk of negative cash flow and provide better returns on investment. 3. **Utilize Vacant Land for Development:** With the high cost of existing properties, developing new rental units on vacant land could be a viable option. By building smaller, more affordable units, investors can cater to the needs of Section 8 voucher holders while potentially achieving positive cash flow through efficient construction and management practices. #### Bottom Line For Section 8-focused investors, the ZIP code 14580 (Webster, NY) is a **skip** recommendation. The high price-to-FMR ratio and limited financial flexibility of voucher holders make it challenging to achieve positive cash flow. Instead, investors should look for areas with a more favorable price-to-FMR ratio or consider alternative rental programs that offer higher subsidies. If investing in this ZIP code, focus on properties that can be rented at or near the FMR levels to minimize financial risks.

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.