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 | $214,212 | 0.66% | D |
| 3BR | $1,710 | $259,585 | 0.66% | D |
| 4BR | $1,880 | $288,416 | 0.65% | D |
| 5BR | $2,181 | $320,829 | 0.68% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 14589, specifically in Williamson, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 14589 in fiscal year 2024 is set at $1180, while the Census ACS data indicates an average market rent of $653. This creates a gap of $527, which is approximately 79.9% of the market rent.
Given that the FMR exceeds the market rent, it is clear that voucher tenants provide an opportunity for landlords and small-portfolio investors to achieve higher yields. By renting to Section 8 tenants, landlords can receive payments closer to the FMR, thereby increasing their rental income above what they would typically earn from non-voucher tenants paying market rates. This is particularly beneficial in Williamson, NY, where only 16.0% of the population are renters, suggesting a limited pool of potential tenants and a competitive advantage for those who accept vouchers.
The median home value in Williamson, NY, stands at $242,000, indicating a relatively stable housing market. However, the median income of $86,885 suggests that many residents might find it challenging to afford homes at the median value without financial assistance. For landlords, accepting Section 8 tenants can be a strategic move to fill vacancies and ensure steady, government-backed rental income.
Despite the benefits, there are also considerations regarding the cost of housing voucher tenants below open-market rates. Landlords must balance the guaranteed income from the vouchers against any potential maintenance or administrative costs that might arise. The difference between the FMR and the actual market rent means that landlords will not be overpaying for maintenance or utilities, as the FMR is designed to reflect the reasonable cost of housing in the area.
In summary, the Section 8 program in ZIP 14589 offers a substantial yield play for landlords due to the significant gap between the FMR and market rent. This makes it an attractive option, especially given the local context of Williamson, NY, where the number of renters is lower, and median incomes are below the median home value.
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.