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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $248,945 | 0.57% | F |
| 3BR | $1,710 | $237,659 | 0.72% | D |
| 4BR | $1,880 | $233,580 | 0.8% | C |
| 5BR | $2,181 | $268,563 | 0.81% | C |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 14590, which encompasses parts of Wolcott, NY, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for FY 2024 is set at $1090, while the Census ACS reports the market rent at $729. This creates a difference of $361 per month, or approximately 51%, between what landlords can charge through the Section 8 program and the current market rate.
Given that the FMR exceeds the market rent, it positions Wolcott, NY, as an attractive yield play for landlords. Specifically, landlords participating in the Section 8 program can expect to receive a higher monthly rental payment compared to the open market. For instance, a landlord could potentially earn $1090 per month from a voucher tenant, which is $361 more than the average market rent. This makes Section 8 properties particularly appealing in an area where only 24.0% of residents are renters, indicating a competitive rental market.
The median home value in Wolcott, NY, is $205,498, and the median income stands at $55,682. These figures suggest that while homeownership is relatively affordable, the income levels may not support high rents. Thus, the Section 8 program offers a way for landlords to secure tenants who might otherwise struggle to afford market-rate housing due to their lower incomes.
However, it's important to note the implications of renting below open-market rates. Landlords must consider the administrative overhead and potential delays in receiving payments from the government. Despite these challenges, the financial benefit of receiving $1090 per month versus the typical $729 can outweigh the costs, especially when factoring in the stability provided by government-backed vouchers.
In summary, the gap between the FMR and market rent in Wolcott, NY, highlights a strategic opportunity for landlords to increase their yields while providing affordable housing options to low-income families. This scenario underscores the importance of the Section 8 program in balancing the needs of tenants with the financial goals of landlords in areas with specific economic characteristics.
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.